April 20, 2018

CT Construction Digest Friday April 20, 2018

Transportation Campaign Links

Guilty plea in Stamford development bribery scheme

STAMFORD — The owner of a Southington fire suppression company, who paid bribes to an employee of Stamford’s largest developer in exchange for contracts, pleaded guilty in federal court to a single count of conspiracy to commit wire fraud.
Michael Uszakiewicz, 52, of Prospect, the owner of K&M Fire Protection, waived his right to be indicted and made his guilty plea in New Haven federal court on Wednesday.
Usazakiewicz and other contractors paid former Building and Land Technology employee Javed Choudhry up to $500,000 in bribes in return for millions in kickback contracts for ongoing construction projects in Stamford between 2011 and 2014, according to a press release from John Durham, United States Attorney for the District of Connecticut. The scheme caused millions of dollars in losses to BLT. As part of the guilty plea, Usazakiewicz agreed to forfeit $1.1 million, which was seized from his bank accounts.
Uszakiewicz was released Wednesday after posting a $100,000 court appearance bond.
The wire fraud charged carries a maximum 20-year sentence and Uszakiewicz is scheduled for sentencing in Hartford federal court on July 9.
On May 16, 2017, Choudhry, of Glastonbury, pleaded guilty to one count of conspiracy to commit wire fraud and one count of filing a false tax return. On January 22, 2018, Kevin Dunn, the president of Delmar Electrical Contractors in Watertown, admitted that he also paid bribes to Choudhry and pleaded guilty to one count of conspiracy to commit wire fraud. Both await sentencing.

Local, state officials attend ribbon cutting at new Meriden train station

By Leigh Tauss
MERIDEN — State and city leaders crowded onto the platform at the new Meriden train station to cut the ribbon on the CTrail Hartford Line, which officials hope will provide an alternative for commuters and potentially ease highway congestion.
“At the very least we have laid out a vision of what transportation in Connecticut could and should be,” said Gov. Dannel P. Malloy. “We have laid out a vision on how that would positively impact the state of Connecticut, by making us far more competitive for the kinds of jobs that we need to attract.”
The transit project, which cost more than $700 million, improved tracks and signals along a 62-mile corridor, updating stations and connecting communities between Hartford and New Haven. Trains will make 17 round trips daily through the region, reaching speeds of up to 110 miles per hour.
The $21 million Meriden station, 60 State St., opened for Amtrak service last fall and features high-level heated platforms, an overhead pedestrian bridge and a passenger display system.
Hartford Line trains will begin running on June 16 and free service will be offered during the program’s inaugural weekend.
Mayor Kevin Scarpati said the commencement of the rail line marks another step in the city’s transformation, bolstered by surrounding housing developments and the Meriden Green.
“I truly see Meriden as a destination for many people in the state of Connecticut, whether they are commuting to work or want to come to a place they can enjoy,” Scarpati said.
For Department of Transportation Commissioner James Redeker, commuter benefits take a back seat to the potential economic growth the rail line could bring to the region.
“This station will become an epicenter for travel, but more importantly, perhaps economic development,” Redeker said. “This is why we do investments in transportation.”
The line was initially set to begin service in May, but was pushed back to June. During a short Q&A, Malloy said the reason for the delay was to work out any potential kinks, noting the trains will run over 500 hours before June.
“We need some practice on the rail system,” Malloy said. “We don’t want to see a replication of other mistakes.” 

Connecticut Water rebuffs Eversource's late takeover bid

Greg Bordonaro
Eversource Energy disclosed Thursday that it attempted to disrupt a nearly $750-million merger involving Connecticut Water Service and a California company by making its own bid to buy the Clinton-based water utility.
Eversource, an energy company that diversified into the water business last year with its $1.68 billion acquisition of Bridgeport-based Aquarion Water Co., said it made an unsolicited bid to buy Connecticut Water Service on April 5, several weeks after California-based SJW Group said it reached a deal to acquire Connecticut Water for about $750 million, or $61.86 per share. The value of the deal since then has gone up to $63.70 per share.
Eversource said it offered Connecticut Water $63.50 per share in cash and/or stock.
Connecticut Water responded Thursday, saying it considered but didn't accept Eversource's late offer because it was "not a superior proposal or reasonably likely to lead to a superior proposal." Instead, the company said it will move forward with its SJW deal because it's in the best interest of shareholders "with significant long-term benefits for the company's customers, employees and communities."
Eversource said it has attempted to engage privately with Connecticut Water for some time and expressed interest in a deal in 2017. It's trying to convince Connecticut Water shareholders, which still need to approve the SJW deal, that it would be a better marriage partner.
"We believe that our proposal represents a unique opportunity to deliver significant and immediate value to Connecticut Water's shareholders, customers, employees, and local communities," said Eversource Chairman, President and Chief Executive Officer Jim Judge. "As such, we were surprised and disappointed that Connecticut Water's board of directors has been unwilling to engage in discussions with us. We urge the board of Connecticut Water to act in the best interests of its shareholders by meeting with us to seriously discuss our compelling proposal."
Under the terms of the SJW deal, the combined company would have a California headquarters and be majority owned (60 percent) by SJW shareholders. Together they would serve more than 1.5 million customers, including more than 450,000 in Connecticut, and have over 700 employees.
Connecticut Water, New England's largest publicly traded water utility company, employs almost 300 full-time employees between Connecticut and Maine, and approximately 210 in its home state.
Eversource said its proposed deal would combine two highly complementary local businesses and it touted its recent acquisition of Aquarion Water Company.

Southbury hotel guests evacuated after gas line break

BY AARON JOHNSON
SOUTHBURY – Workers punctured a gas line Thursday on a job site at the corner of Strongtown and Judd roads, closing the road and forcing the evacuation of the Wyndham hotel.
A contractor, working on a Department of Transportation project, hit a gas line around 1 p.m. near the corner of Judd Road and Strongtown Road, state Route 188. The state did not identify the contractor Thursday afternoon.
Eversource crews turned out to rectify the issue shortly after it had happened.
Southbury Police were on scene directing traffic while the line was being repaired. Workers were still on site as of 8 p.m. Thursday, Eversource spokesman Mitch Gross said.
“No idea how long,” Gross said. “We’re moving as quickly and safely as we can. They’re moving as fast as they can to get things done.”
Wyndham Southbury, on Strongtown Road near where the incident took place, confirmed that it did have to evacuate at one point during the day, but did not comment further.