Phase II and Compost Facility Upgrade Projects February 16, 2012

Summary of Projects WW Phase I-Completed in Funded through capital reserve funds. Modified aeration system, removed Trickling Filter from service, and replaced secondary sludge dewatering equipment WW Phase I-Completed in Funded through capital reserve funds. Modified aeration system, removed Trickling Filter from service, and replaced secondary sludge dewatering equipment WW Phase II-Proposed for FY $4.2 million funded through SRF loan. WW Phase II-Proposed for FY $4.2 million funded through SRF loan. WW Phase III (final phase)- Proposed for FY $4.5 million. Replace clarifier drives, electrical upgrades, headwork's screening plant, sludge pump replacement WW Phase III (final phase)- Proposed for FY $4.5 million. Replace clarifier drives, electrical upgrades, headwork's screening plant, sludge pump replacement Compost Facility-Proposed for $2.875 million Compost Facility-Proposed for $2.875 million Thornton's Ferry and Souhegan Pump Station Upgrades- Proposed for $2.8 million Thornton's Ferry and Souhegan Pump Station Upgrades- Proposed for $2.8 million

Wastewater Facility Needs Forty two year old equipment needs replacing and in some cases is oversized for current flows and loads Forty two year old equipment needs replacing and in some cases is oversized for current flows and loads Necessary for continued compliance with the Town’s EPA discharge permit Necessary for continued compliance with the Town’s EPA discharge permit Upgrades and replacements will be paid for through sewer user fees; not through taxes Upgrades and replacements will be paid for through sewer user fees; not through taxes Estimated cost of Phase II is 4.2 million dollars Estimated cost of Phase II is 4.2 million dollars

Raw Wastewater Pumps Replace two old pumps with three more efficient pumps Replace two old pumps with three more efficient pumps Estimated cost is $606,000 Estimated cost is $606,000 Estimated annual electrical savings is $21,000 Estimated annual electrical savings is $21,000

Primary Clarifier Effluent Pumps Replace two old primary effluent pumps with three more efficient pumps Replace two old primary effluent pumps with three more efficient pumps Estimated cost is $575,000 Estimated cost is $575,000 Estimated annual electrical savings is $9,000 Estimated annual electrical savings is $9,000

Aeration System Replace 5 aeration blowers with more efficient blowers. Estimated cost is $993,000 Replace 5 aeration blowers with more efficient blowers. Estimated cost is $993,000 Replace 4 return sludge pumps. Estimated cost is $472,000 Replace 4 return sludge pumps. Estimated cost is $472,000 Modify aeration system with internal recycle pumps to reduce energy demand by 20%. Estimated cost is $794,000 Modify aeration system with internal recycle pumps to reduce energy demand by 20%. Estimated cost is $794,000 Overall estimated annual electrical savings is $30,000 Overall estimated annual electrical savings is $30,000

Plant Water System Replace original plant water system Replace original plant water system Estimated Cost is $242,000 Estimated Cost is $242,000 Estimated annual electrical savings is $2,500 Estimated annual electrical savings is $2,500

SCADA Improvements Supervisory Control and Data Acquisition Supervisory Control and Data Acquisition SCADA provides automated control of facility functions and unattended operation at night SCADA provides automated control of facility functions and unattended operation at night Estimated improvement cost is $229,600 Estimated improvement cost is $229,600

Dechlorination System Dechlorination is the elimination of free chlorine by adding sodium-bisulfite before discharge to the Merrimack River Dechlorination is the elimination of free chlorine by adding sodium-bisulfite before discharge to the Merrimack River Recommend installing new dechlorination facilities Recommend installing new dechlorination facilities Estimated cost is $198,000 Estimated cost is $198,000

Facility Lighting Based on recommendations in PSNH energy audit Based on recommendations in PSNH energy audit Replace existing lighting systems in all buildings with new and more efficient lights and motion sensitive lights Replace existing lighting systems in all buildings with new and more efficient lights and motion sensitive lights Estimated cost is $90,400 Estimated cost is $90,400 Estimated annual electrical savings is $5,000 Estimated annual electrical savings is $5,000

Summary for Phase II Upgrade Raw Wastewater Pumps $606,000 Raw Wastewater Pumps $606,000 Primary Effluent Pumps $575,000 Primary Effluent Pumps $575,000 Aeration Blowers $993,000 Aeration Blowers $993,000 RAS pumps $472,000 RAS pumps $472,000 Internal Recycle Pumps $794,000 Internal Recycle Pumps $794,000 Plant Water System $242,000 Plant Water System $242,000 SCADA $229,600 SCADA $229,600 Dechlorination $198,000 Dechlorination $198,000 Facility Lighting $90,400 Facility Lighting $90,400 Energy Savings (annual) $67,500 Energy Savings (annual) $67,500

Recommendation State Revolving Loan Fund (SRF) – 20 Year low interest %. Funds have been secured for this project if approved at Town meeting this year State Revolving Loan Fund (SRF) – 20 Year low interest %. Funds have been secured for this project if approved at Town meeting this year State Aid Grant - 20% grant payment or approximately $840,000. State legislature needs to reauthorize program and no payments have been made on new projects State Aid Grant - 20% grant payment or approximately $840,000. State legislature needs to reauthorize program and no payments have been made on new projects

COMPOST FACILITY UPGRADE February 16, 2012

Compost Facility Needs The existing composting building and equipment is now 18 years old and is in need of repair and replacement The existing composting building and equipment is now 18 years old and is in need of repair and replacement Wright-Pierce evaluated the condition of building and equipment in 2006 and developed a cost estimate and recommendations for necessary improvements Wright-Pierce evaluated the condition of building and equipment in 2006 and developed a cost estimate and recommendations for necessary improvements Building structure reviewed in September 2011 with cost estimate revised to $2.875 million Building structure reviewed in September 2011 with cost estimate revised to $2.875 million Upgrades and replacements will be paid for through sewer user fees; not through taxes Upgrades and replacements will be paid for through sewer user fees; not through taxes

Compost Facility Summary Summary of upgrades and associated costs: Summary of upgrades and associated costs: 1) Aeration blower replacement (75) 225,000 2) Biofilter Improvements 10,000 3) 2- new agitators 850,000 4) Structural Coating 1,024,000 5) Electrical Repairs 50,000 6) Control System Upgrade 185,000 7) Amendment Storage Shed Replacement 100,000 8) Engineering 431,000 $2,875,000 $2,875,000

Existing Composting Building

Alternative Disposal Options (in million dollars) Town operated compost facility $12.9 Town operated compost facility $12.9 Privately operated compost facility$13.1 Privately operated compost facility$13.1 Landfill $15.6 Landfill $15.6 Note: 20 year present value estimates Note: 20 year present value estimates

History of Wastewater Sludge Disposal Sludge has been composted for the past 30 years Sludge has been composted for the past 30 years Current facility began operation in 1994 in a totally enclosed metal building that is ventilated through a biofilter for odor control Current facility began operation in 1994 in a totally enclosed metal building that is ventilated through a biofilter for odor control Compost turner

Compost Building Condition Compost Building Condition Due to the moist and corrosive nature of the atmosphere, the building and equipment have shown signs of significant deterioration Due to the moist and corrosive nature of the atmosphere, the building and equipment have shown signs of significant deterioration

Revenues The Town generates up to $140,000 in additional revenue annually by composting outside sources of sludge The Town generates up to $140,000 in additional revenue annually by composting outside sources of sludge Compost revenues for 2011 were $103,000 Compost revenues for 2011 were $103,000 Revenues generated make composting the most cost effective, environmentally sound option Revenues generated make composting the most cost effective, environmentally sound option

Sewer Rates State annual average residential sewer rate is $500 State annual average residential sewer rate is $500 Merrimack annual residential sewer rate is $197 Merrimack annual residential sewer rate is $197 Merrimack ranks 103 lowest out of 109 NH communities that charge a sewer rate Merrimack ranks 103 lowest out of 109 NH communities that charge a sewer rate No Merrimack rate increase proposed for FY No Merrimack rate increase proposed for FY 12-13

Recommendation Recommendation Continue Town operated composting with facility improvements of $2.875 million Continue Town operated composting with facility improvements of $2.875 million 15 year Bond 15 year Bond