After facing Connecticut’s third nor’easter in less than two weeks, municipalities reminded state officials Wednesday that strained local snow removal budgets badly need overdue state aid.
But the prospects of any immediate release of the stalled $30 million in Town Aid Road grants seemed dim, given that Gov. Dannel P. Malloy and the legislature still have no agreement on the future of the state’s struggling Special Transportation Fund.
The Connecticut Conference of Municipalities and the state’s Council of Small Towns both urged officials to hasten the release of funds communities normally would have received in January.
“With additional late winter snowfalls, the stress on public works and snow removal budgets will only heighten,” CCM spokesman Kevin Maloney said. “That situation, combined with the continued delay in promised and budgeted state aid for local road repairs does not bode well for the condition of local roads this spring.”
Many communities use the Town Aid Road grant not only to fund local road repairs, but also to cover snow removal costs.
“Towns have to go out to bid and enter into contracts now to begin to move forward with projects in the spring,” said Betsy Gara, executive director of COST. “The uncertainty regarding whether Town Aid Road grants will be released is forcing towns to defer needed road maintenance projects, which will lead to higher repair costs down the line.”
Gara and Maloney both noted that stalled roadwork also would be a detriment to the local construction industry in many communities.
The road repair grants have become entangled in a larger dispute over the future of Connecticut’s transportation program.
The state budgeted $60 million in TAR grants for the full fiscal year. Normally it delivers half those funds in July and the remainder in January. Connecticut borrows the funds, financing the grant payments through the sale of bonds on Wall Street.
But several factors have interfered with the normal flow of road repair funds to cities and towns.
The legislature did not adopt a new budget for this fiscal year until late October. The State Bond Commission approved bonding for the first $30 million installment at its Nov. 29 meeting.
But Malloy also warned legislators, Wall Street and others in November that the Special Transportation Program — and Connecticut’s aging, overcrowded infrastructure — is on the brink of a fiscal crisis.
Absent more funding, the administration says, the state would need to scrap some rail services; drive up rail and bus fares; suspend 40 percent of planned capital projects, including major highway rebuilds like the Hartford viaduct; and possibly suspend TAR grants to remain solvent over the next five years. It also warned some changes would begin this year.
Malloy has asked lawmakers to add seven cents to Connecticut’s 25-cents-per-gallon retail gasoline tax, and to order electronic tolling on highways. The latter, if approved, probably would not yield major revenue until the 2021-22 fiscal year, the administration says.
Though Democrats have been divided on the governor’s proposals for tolls and a fuel tax hike, GOP lawmakers have been almost unanimous in their opposition to both.
The governor, whose budget office sets the State Bond Commission agenda, did not include the second installment of TAR grants on its March 16 agenda.
Malloy said at the time that he could not justify financing more road repair grants for towns when the administration had just canceled or delayed $4.3 billion worth of state projects, including the upgrades to the elevated section of Interstate 84 in Hartford as well as the junction of I-84 and Route 8 in Waterbury, commonly known as the “mixmaster.”
And as of Wednesday, it seemed both Malloy and legislative leaders had not changed their positions. CLICK TITLE TO CONTINUE
Contractor chosen for work on Southington pump station
BRIAN M. JOHNSON
SOUTHINGTON - The Town Council has awarded three tax abatements to local businesses and selected the contractor for the South End pump station project.
The low bid for the pump station rehabilitation came from the Kovacs Construction Co. of Oxford, one of four companies that bid on the project.
Its bid of $499,600 includes includes a $489,000 base bid, $300 for excavation of rock and concrete, $300 for unsuitable soil excavation and disposal, and a $10,000 utility allowance.
Going into the bidding process, the town had estimated the projects cost at $700,000.
Kovacs is involved in several bonded projects related to water and wastewater system improvements in nearby towns.
It also worked on a recently completed sludge-thickening project in Southington with “excellent results,” according a letter to the council signed by Town Attorney Carol Futtner, Finance Director Emelia Portelinha and Assistant Town Engineer Jim Grappone.
Project designer Tighe & Bond will perform construction inspection throughout the 345-day project, at a cost of $89,000.
A tax abatement was awarded to J&P Manufacturing of Plainville, which is building a 6,000-square-foot facility at 48 Industrial Drive. The company, which specializes in aerospace parts, plans to employ five or six people in its first year.
Another tax abatement was given to Top Line Productions, which has built a 13,300-square-foot commercial building, which will include a showroom, at 158 Industrial Drive for the manufacture wood furniture and cabinetry.
The final abatement was granted to Witchdoctor Brewing Company, which has opened a 4,000-square-foot brewery in Factory Square. Witchdoctor completed extensive renovations and opened a large window area for people walking the nearby trail to look in through.
CT Water to merge with Calif. water utility
Joe Cooper
Connecticut Water Service and a California water utility agreed Thursday to merge in a $750 million deal they say will create the nation's third-largest water utility.
SJW Group of San Jose, Calif., and Clinton-based Connecticut Water Service called their proposed combination "a merger of equals." Under terms of the deal, Connecticut Water shareholders will receive 1.1375 shares of SJW Group stock for each share, which translates to approximately $61.86 per share.
The two said the merger would drive benefits for both shareholders and customers.
In an interesting twist, SJW Group President and CEO Eric W. Thornburg was previously CEO of Connecticut Water, resigning last September. He would remain the leader of the combined company, while his Connecticut Water successor, David Benoit, will be president of the company's New England region.
After leading both companies, Thornburg said he is confident they have a "strong culture fit" to drive future growth.
"This transformational merger of equals joins two leading and complementary water utility companies to create significant long-term benefits for shareholders, customers, employees and the communities we serve," Thornburg said. "The combination will establish a premier organization with substantial opportunities for new investment across a diverse set of geographies and an improved ability to serve our customers."
The company headquarters will remain in California and SJW shareholders will own about 60 percent of the combined companies.
Combined, they will serve more than 1.5 million customers, including more than 450,000 in Connecticut, and have over 700 employees.
CT Water 2017 profits rise
Also on Thursday, Connecticut Water announced a spike in its 2017 net earnings of $25.1 million, or $2.17 per share, on total revenues of $113.8 million from its water operations, service and rentals, and real estate segments.
By comparison, the company reported net income of $23.4 million, or $2.12 per share, on total revenues of $105.3 million in 2016.
Officials said the revenue increase was due to acquisitions of the Heritage Village Water Company and the Avon Water Company, both acquired in 2017.
"CTWS delivered on its long-term growth strategy of prudent acquisitions and infrastructure investment in 2017," Benoit said. "CTWS grew the number of customers it serves by 10 percent through acquisitions in 2017, and entered the publicly regulated wastewater space."
AG: Initial step to MGM casino would not jeopardize tribal deal
Attorney General George Jepsen advised legislators Thursday that the state could take a tentative step toward testing the market for opening Connecticut to commercial casinos without immediately jeopardizing $260 million in slots revenue the state expects to collect this year under an exclusivity deal with the tribal owners of Foxwoods Resort Casino and the Mohegan Sun.
Jepsen submitted written testimony on several gaming bills before the legislature’s Public Safety and Security Committee, including a measure sought by MGM Resorts International that would repeal a 2017 law granting exclusive rights to the two tribes to jointly develop a casino in East Windsor. Instead, the bill would authorize an initial step toward an open competition for casino expansion.
“Whether to go forward with the proposed legislation is, in my view, strictly a policy decision,” Jepsen wrote. “As a legal matter, however, it is my opinion that the proposed legislation would not run afoul of our existing agreements with the Tribes.”
The bill before the public safety committee, which has jurisdiction over gambling legislation, would create a multi-step process toward allowing a casino outside the exclusivity deal that has produced about $7 billion for Connecticut over the past quarter century. No casino license could be granted without further legislation, presumably no sooner than 2019.
But passage would be a victory for MGM Resorts, the Nevada-based gaming giant locked in the third year of a bitter and expensive lobbying battle to protect the market of MGM Springfield, the resort under construction just over the state line. MGM is using the prospects of a future casino in Bridgeport to build support for repealing the East Windsor authorization now.
It is fighting here and in Washington to block construction of the East Windsor casino, now planned by a joint venture of the Mashantucket Pequot and Mohegan tribes for a hillside overlooking I-91, roughly halfway between Hartford and Springfield. The facility was proposed by the tribes to blunt the loss of market share to MGM, not expand gaming revenues to Connecticut.
Sen. Steve Cassano, D-Manchester, said during the opening hour of what was expected to be an all-day public hearing that there is no reason to repeal the East Windsor authorization, even if the legislature decides to test the interest in casino expansion in Bridgeport with a request for proposals next year.
“I am astounded that in order to do that we’re going to kill another casino. We don’t have to kill this casino to move forward in Bridgeport or somewhere else,” Cassano said. “What’s wrong with us? Let’s get our act together.”
Rep. Christopher Davis, R-Ellington, whose district includes a portion of East Windsor, said MGM’s push for the legislation has nothing to do with Bridgeport.
“It’s to stop the casino in East Windsor,” he said.
Rep. Kevin Skulczyck, R-Griswold, whose district is home to many tribal casino employees, said the committee was being played by MGM, and he pointed to the buses that have brought Bridgeport residents to testify in support of its bill.
“I believe somebody paid for the buses. I believe somebody paid for the whole bill,” Skulczyck said. “It’s MGM.They’re behind the whole thing.”
Rep. Jeffrey J. Berger, D-Waterbury, one of the backers of the MGM bill, objected to Skulczcyck’s remarks.
“I take exception to the representative stating that MGM has bought this bill,” Berger said.
Jepsen also offered testimony Thursday on the legal risks in two other gaming bills: One allowing sports betting, should the U.S. Supreme Court strike down current federal restrictions; the other allowing the Connecticut Lottery to conduct an online lottery.
The attorney general’s office has been an unusually influential voice in all gaming issues, a consequence of exclusivity deals struck in the early 1990s by Gov. Lowell P. Weicker Jr. that have greatly complicated nearly every subsequent proposal to expand gambling, ranging from lottery games to Keno.
After the legislature rebuffed his efforts to block the tribal casinos, Weicker made a tactical retreat with agreements that gave the tribes exclusive rights to casino gaming in return for a 25 percent share of gross slots revenue. The deals not only produced a financial windfall for the state, they raised a firewall against new gaming.
A difficult challenge for any commercial casino owner wanting to expand into Connecticut, an attractive market given its proximity to New York City, was convincing the state it could do better with a resort in southern Connecticut than it was getting from the tribes. Donald J. Trump and Steve Wynn each failed to make the case. CLICK TITLE TO CONTINUE
O&G Wins Paving Award for New Haven Highway Project
The team of O&G Industries and Tutor Perini Corporation was recently awarded the National Asphalt Pavement Association's (NAPA) Quality in Construction Award for the reconstruction of I-95 / I-91 / Route 34 Interchange, known as Contract E.
The six-year, $365 million project was completed in the fall of 2017 and involved the demolition of 19 bridges over the 7.2-mi. span of highway, including one that took place overnight in sub-freezing temperatures. The project was one of the several projects that comprised the Pearl Harbor Memorial Bridge replacement project
The project has won four additional awards including: 2017 Congress (CBC) Project Team Award of Merit for a Transportation Project; 2017 American Association of State Highway and Transportation Officials America's Transportation Award for Projects over $200M; 2017 Connecticut Road Builders Association (CRBA) Arthur Gruhn Excellence in Construction Award for Large Projects; and the 2014 Connecticut Construction Industries Association (CCIA) Excellence in Construction Health & Safety Award.
The award was presented at NAPA's 63rd Annual Meeting in San Diego on Feb. 14th.
Its bid of $499,600 includes includes a $489,000 base bid, $300 for excavation of rock and concrete, $300 for unsuitable soil excavation and disposal, and a $10,000 utility allowance.
Going into the bidding process, the town had estimated the projects cost at $700,000.
Kovacs is involved in several bonded projects related to water and wastewater system improvements in nearby towns.
It also worked on a recently completed sludge-thickening project in Southington with “excellent results,” according a letter to the council signed by Town Attorney Carol Futtner, Finance Director Emelia Portelinha and Assistant Town Engineer Jim Grappone.
Project designer Tighe & Bond will perform construction inspection throughout the 345-day project, at a cost of $89,000.
A tax abatement was awarded to J&P Manufacturing of Plainville, which is building a 6,000-square-foot facility at 48 Industrial Drive. The company, which specializes in aerospace parts, plans to employ five or six people in its first year.
Another tax abatement was given to Top Line Productions, which has built a 13,300-square-foot commercial building, which will include a showroom, at 158 Industrial Drive for the manufacture wood furniture and cabinetry.
The final abatement was granted to Witchdoctor Brewing Company, which has opened a 4,000-square-foot brewery in Factory Square. Witchdoctor completed extensive renovations and opened a large window area for people walking the nearby trail to look in through.
CT Water to merge with Calif. water utility
Joe Cooper
Connecticut Water Service and a California water utility agreed Thursday to merge in a $750 million deal they say will create the nation's third-largest water utility.
SJW Group of San Jose, Calif., and Clinton-based Connecticut Water Service called their proposed combination "a merger of equals." Under terms of the deal, Connecticut Water shareholders will receive 1.1375 shares of SJW Group stock for each share, which translates to approximately $61.86 per share.
The two said the merger would drive benefits for both shareholders and customers.
In an interesting twist, SJW Group President and CEO Eric W. Thornburg was previously CEO of Connecticut Water, resigning last September. He would remain the leader of the combined company, while his Connecticut Water successor, David Benoit, will be president of the company's New England region.
After leading both companies, Thornburg said he is confident they have a "strong culture fit" to drive future growth.
"This transformational merger of equals joins two leading and complementary water utility companies to create significant long-term benefits for shareholders, customers, employees and the communities we serve," Thornburg said. "The combination will establish a premier organization with substantial opportunities for new investment across a diverse set of geographies and an improved ability to serve our customers."
The company headquarters will remain in California and SJW shareholders will own about 60 percent of the combined companies.
Combined, they will serve more than 1.5 million customers, including more than 450,000 in Connecticut, and have over 700 employees.
CT Water 2017 profits rise
Also on Thursday, Connecticut Water announced a spike in its 2017 net earnings of $25.1 million, or $2.17 per share, on total revenues of $113.8 million from its water operations, service and rentals, and real estate segments.
By comparison, the company reported net income of $23.4 million, or $2.12 per share, on total revenues of $105.3 million in 2016.
Officials said the revenue increase was due to acquisitions of the Heritage Village Water Company and the Avon Water Company, both acquired in 2017.
"CTWS delivered on its long-term growth strategy of prudent acquisitions and infrastructure investment in 2017," Benoit said. "CTWS grew the number of customers it serves by 10 percent through acquisitions in 2017, and entered the publicly regulated wastewater space."
AG: Initial step to MGM casino would not jeopardize tribal deal
Attorney General George Jepsen advised legislators Thursday that the state could take a tentative step toward testing the market for opening Connecticut to commercial casinos without immediately jeopardizing $260 million in slots revenue the state expects to collect this year under an exclusivity deal with the tribal owners of Foxwoods Resort Casino and the Mohegan Sun.
Jepsen submitted written testimony on several gaming bills before the legislature’s Public Safety and Security Committee, including a measure sought by MGM Resorts International that would repeal a 2017 law granting exclusive rights to the two tribes to jointly develop a casino in East Windsor. Instead, the bill would authorize an initial step toward an open competition for casino expansion.
“Whether to go forward with the proposed legislation is, in my view, strictly a policy decision,” Jepsen wrote. “As a legal matter, however, it is my opinion that the proposed legislation would not run afoul of our existing agreements with the Tribes.”
The bill before the public safety committee, which has jurisdiction over gambling legislation, would create a multi-step process toward allowing a casino outside the exclusivity deal that has produced about $7 billion for Connecticut over the past quarter century. No casino license could be granted without further legislation, presumably no sooner than 2019.
But passage would be a victory for MGM Resorts, the Nevada-based gaming giant locked in the third year of a bitter and expensive lobbying battle to protect the market of MGM Springfield, the resort under construction just over the state line. MGM is using the prospects of a future casino in Bridgeport to build support for repealing the East Windsor authorization now.
It is fighting here and in Washington to block construction of the East Windsor casino, now planned by a joint venture of the Mashantucket Pequot and Mohegan tribes for a hillside overlooking I-91, roughly halfway between Hartford and Springfield. The facility was proposed by the tribes to blunt the loss of market share to MGM, not expand gaming revenues to Connecticut.
Sen. Steve Cassano, D-Manchester, said during the opening hour of what was expected to be an all-day public hearing that there is no reason to repeal the East Windsor authorization, even if the legislature decides to test the interest in casino expansion in Bridgeport with a request for proposals next year.
“I am astounded that in order to do that we’re going to kill another casino. We don’t have to kill this casino to move forward in Bridgeport or somewhere else,” Cassano said. “What’s wrong with us? Let’s get our act together.”
Rep. Christopher Davis, R-Ellington, whose district includes a portion of East Windsor, said MGM’s push for the legislation has nothing to do with Bridgeport.
“It’s to stop the casino in East Windsor,” he said.
Rep. Kevin Skulczyck, R-Griswold, whose district is home to many tribal casino employees, said the committee was being played by MGM, and he pointed to the buses that have brought Bridgeport residents to testify in support of its bill.
“I believe somebody paid for the buses. I believe somebody paid for the whole bill,” Skulczyck said. “It’s MGM.They’re behind the whole thing.”
Rep. Jeffrey J. Berger, D-Waterbury, one of the backers of the MGM bill, objected to Skulczcyck’s remarks.
“I take exception to the representative stating that MGM has bought this bill,” Berger said.
Jepsen also offered testimony Thursday on the legal risks in two other gaming bills: One allowing sports betting, should the U.S. Supreme Court strike down current federal restrictions; the other allowing the Connecticut Lottery to conduct an online lottery.
The attorney general’s office has been an unusually influential voice in all gaming issues, a consequence of exclusivity deals struck in the early 1990s by Gov. Lowell P. Weicker Jr. that have greatly complicated nearly every subsequent proposal to expand gambling, ranging from lottery games to Keno.
After the legislature rebuffed his efforts to block the tribal casinos, Weicker made a tactical retreat with agreements that gave the tribes exclusive rights to casino gaming in return for a 25 percent share of gross slots revenue. The deals not only produced a financial windfall for the state, they raised a firewall against new gaming.
A difficult challenge for any commercial casino owner wanting to expand into Connecticut, an attractive market given its proximity to New York City, was convincing the state it could do better with a resort in southern Connecticut than it was getting from the tribes. Donald J. Trump and Steve Wynn each failed to make the case. CLICK TITLE TO CONTINUE
O&G Wins Paving Award for New Haven Highway Project
The team of O&G Industries and Tutor Perini Corporation was recently awarded the National Asphalt Pavement Association's (NAPA) Quality in Construction Award for the reconstruction of I-95 / I-91 / Route 34 Interchange, known as Contract E.
The six-year, $365 million project was completed in the fall of 2017 and involved the demolition of 19 bridges over the 7.2-mi. span of highway, including one that took place overnight in sub-freezing temperatures. The project was one of the several projects that comprised the Pearl Harbor Memorial Bridge replacement project
The project has won four additional awards including: 2017 Congress (CBC) Project Team Award of Merit for a Transportation Project; 2017 American Association of State Highway and Transportation Officials America's Transportation Award for Projects over $200M; 2017 Connecticut Road Builders Association (CRBA) Arthur Gruhn Excellence in Construction Award for Large Projects; and the 2014 Connecticut Construction Industries Association (CCIA) Excellence in Construction Health & Safety Award.
The award was presented at NAPA's 63rd Annual Meeting in San Diego on Feb. 14th.