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Good evening.

I am Timothy Murphy, the Executive Director of the Albany County Water

Purification District.

I would first like to thank you on behalf of the employees of the District and
treatment plants across the country for the name change. District employees
perform amazing work to provide a safer/cleaner environment for our
communities. The fact that, the Board of Commissioners, The County Executive
and the Albany County Legislature recognize the importance of that work and
the need to take positive steps to present a better image and understanding of
the work being accomplished to improve water quality is very much
appreciated. Many other facilities have contacted us with the desire to
understand the process to change their facility names as well.

2018 will mark our 50th anniversary of our creation and the County Executive
will be having a rebranding ceremony on October 20th to mark the occasion. You
are all welcome to join us.

I would also like to report to you the Districts continued support for its eight
membered communities and their related sewer infrastructure projects
primarily those with Combined Sewer Overflows. The CSO communities have
made marked improvement prioritizing CSO abatement projects that will have
the greatest impact on water quality. With some of the oldest collection
systems in the country they need continued support for additional federal
funding for these projects.

I would like to thank you on behalf of Chairman Adair (who would have been
here tonight if he werent away) and on behalf of the Board of Commissioners
for the invitation to present to you an update on the studies the legislature
approved beginning in 2010 regarding the solids handling operations at the
Albany County Water Purification District.

The District is making substantial progress to advance plans to develop a

Regional Anaerobic Digestion facility which it hopes to partner with Saratoga
County Sewer District to treat the biosolids from the two Albany County plants
and the Saratoga County Sewer District plant. This facility would also be capable
of receiving and treating high strength organic waste from commercial and
industrial operation such as food waste, cheese and yogurt waste, etc.

Studies have shown that food waste is the single largest category of municipal
solid waste going to landfills. By diverting food waste from landfills, this can
provide a significant contribution toward landfill management.

On September 13, 2010 by resolution 364, recommended by Majority Leader,

Frank Commisso, the District requested authorization to establish a pilot study
program at the South Plant facility to turn organic waste into energy.

A pilot study was performed by Spectrum Bioenergy and submitted to the

District in April 2013, which demonstrated a project would be technically
feasible, regulatory compliant, and would provide environmental and economic
benefit to our communities.

Pursuant to resolution 221 for 2015, the District requested to enter into an
agreement with CDM Smith for engineering services to evaluate the potential
development of a Regional Organic Sustainable Energy (ROSE) project using
Anaerobic Digestion at the South plant to treat high strength organic waste and
sludge from the treatment plant operation.

CDM Smith was to perform their study in three phases: Project Development,
Contract Procurement and Implementation:

In April 2016, CDM submitted the Project Development preliminary report

on the South plant indicating that, while a project would provide benefit
to the District by increasing revenues and decreasing the Operating and
Maintenance costs, the expected project cost would be expected to be
around $16 million dollars with a 39 year payback. With these high costs
and expected payback period, the District halted any further
advancement of the study and negotiated with CDM Smith to evaluate
the potential of combining the South Plants and North Plants bio solids
handling operations in an effort to have a more feasible project and still
provide treatment of high strength organic waste.

In November 2016, CDM Smith presented the District with the final report to
construct an Anaerobic Digestion facility at the North plant that would
consolidate the bio solids from the South Plant at North Plant, as well as all
outside sludge sources presently being treated by the District from the Town of
Bethlehem, Town of Coeymans, and numerous smaller treatment plants.

This study demonstrated that a project of this type would be feasible with a cost
of roughly $26 million and an 11 year payback. The District found this to be a
more reasonable project to pursue and presented it to the Board of
Commissioners. The Board of Commissioners supported this project but
directed the District to pursue sources of funding such as grants, as this would
be the largest capital improvement project ever undertaken by the District.

Also in 2015, the Saratoga County Sewer District was also evaluating its bio
solids handling operation. Saratoga maintained an onsite fluidized bed
incinerator for a number of years and, due to operational issues and the newly
promulgated Sewage Sludge Incinerator Maximum Achievable Control
Technology (MACT) rule, found it would require considerable expense to
maintain their incinerator operation. Saratoga thus shutdown their incinerator
and has been pressing and hauling their sludge at great expense to landfills.
Saratoga is presently seeking a long term solution for bio solids handling.

Through discussions between myself and the Saratoga Executive Director, Dan
Rourke, we discussed the potential of creating a Regional Bio Solids Handling
Facility using Anaerobic Digestion with the added ability to accept high strength
organic waste. This facility, if found to be feasible, would consolidate and
manage the bio solids generated from the Saratoga treatment plant and our
Districts North and South Plants with a digester located at our North Plant
facility in Menands. Sludge from the Saratoga plant and our South plant would
be trucked to the North plant for treatment. Due to the location of the North
Plant and the proximity of the major arterials surrounding it, this facility would
provide a good location for receiving high strength organic waste for outside
sources as well.

A project of this nature is in line with the governors initiative to get organics
out of New York State landfills. It is also in line with the Albany County
Legislature and the County Executives initiatives to advance greener projects
and make County departments more energy efficient while reducing costs to
our rate payers.

The revenues from the receipt of high strength organic waste would help offset
the Operation and Maintenance costs.

By consolidating the bio solids management for both the Saratoga Sewer
District and the Albany County Water Purification District North and South
Plants we could save the rate payers of both counties through shared costs in
construction and operating/maintenance costs.

Additionally, we would be able to offset costs with the acceptance of high

strength organic waste and the production of electricity generated from the
biogas which is a main byproduct from the digestion process. The Board of
Commissioners look forward to presenting these findings to the legislature later
this year.

I again thank you for this opportunity to provide you with this update and
answer any questions you may have.