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.