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. A number of facilities
have contacted us with the desire to understand the process to change their facility name as
well.

2018 will mark the 50th anniversary of our formation 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 state and
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 biosolids
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 operations such as food waste, cheese and yogurt waste, and organic
waste from other sources.

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 project using Anaerobic Digestion at the South plant to treat high
strength organic waste and biosolids 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 around $16 million dollars with a 39 year payback. With these costs and
extended 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 biosolids 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 biosolids from the
South Plant at North Plant, as well as all outside biosolids 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 Biosolids Incinerator Maximum
Achievable Control Technology rule, found it would require considerable expense to maintain
their incinerator operation. Saratoga thus shutdown their incinerator and has been pressing
and hauling their biosolids 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 (who is
in attendance here tonight), we discussed the potential of creating a Regional Bio Solids
Handling Facility using Anaerobic Digestion with the added ability of accepting high strength
organic waste. This facility, if found to be feasible, would consolidate and manage the biosolids
generated from the Saratoga treatment plant and our Districts North and South Plants with a
digester located at our North Plant facility in Menands. Biosolids 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 County 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 these 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.

Arcadis Design and Consulting Engineers has been contracted by both Districts under a
NYSERDA grant to submit its findings of a review for a consolidation of all three plants biosolids
for a Regional Bio solids handling facility

The Board of Commissioners is look forward with presenting these findings to the legislature
later this year.
I again thank you for this opportunity to provide you with this update and Mr. Rourke and I can
answer any questions you may have.