Northeast Orange County Water Supply Feasibility Study Orange County Water Authority November 2010

Final Draft Report

Prepared by:

Henningson, Durham & Richardson Architecture and Engineering, P.C.

McGoey, Hauser, and Edsall, P.C.

The Amawalk Consulting Group

November 2010

FINAL DRAFT

Table of Contents

1. INTRODUCTION AND PROJECT OVERVIEW ...... 1-1 1.1 New York State Department of State Local Government Efficiency Grant ...... 1-2 1.2 Project Approach ...... 1-2 1.3 Alternative Selection ...... 1-3 1.4 Financial Analysis ...... 1-4 2. BACKGROUND ...... 2-1 2.1 Examples of Regional Approaches to Address Inter-municipal Water Supply Needs ...... 2-3 2.1.1 The Westchester Joint Water Works ...... 2-3 2.1.2 Northern Westchester Joint Water Works...... 2-3 2.1.3 Orange County Water Authority ...... 2-4 2.1.4 Mohawk Valley Water Authority ...... 2-4 2.1.5 Cayuga County Communities ...... 2-5 2.1.6 Cost Of New York City Water ...... 2-7 2.2 New York City Aqueduct Issues ...... 2-8 2.2.1 Overview of New York City Aqueduct System in Orange County ...... 2-8 2.2.2 Shaft 4 Delaware Aqueduct Interconnection to the Catskill Aqueduct: Construction and Shutdown Schedule ...... 2-9 2.2.3 Construction of a 36-inch Transmission Pipeline Parallel to the Catskill Aqueduct ...... 2-11 2.2.4 Rondout-West Branch Tunnel (Delaware Aqueduct) Shutdown Schedule ...... 2-11 2.3 Existing Municipal Water Supply System Status, Facilities, and Treatment...... 2-11 2.3.1 Town of Newburgh ...... 2-12 2.3.2 Town of New Windsor ...... 2-12 2.3.3 City of Newburgh ...... 2-13 2.3.4 Village of Cornwall (water district) ...... 2-13 2.3.5 Town of Montgomery ...... 2-14 2.3.6 Town of Cornwall ...... 2-14 2.4 System Needs ...... 2-15

i Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

3. ALTERNATIVES TO MEET WATER SUPPLY NEEDS ...... 3-1 3.1 Alternative 1: Joint Town of New Windsor/Town of Newburgh Plant Supplied with a New York City Catskill Aqueduct Water Tap, and Located at Stewart International Airport ...... 3-4 3.1.1 Alternative 1A: Joint Town of Newburgh/New Windsor Water Filtration Plant located in the Town of Newburgh ...... 3-5 3.1.2 Alternative 1B: Joint Town of Newburgh/Town of New Windsor Water Filtration Plant Located in Town of New Windsor ...... 3-5 3.1.3 Alternative 1C: Joint Town of Newburgh/Town of New Windsor 5 MGD Water Filtration Plant Located in Town of New Windsor with a 6.0 MGD Membrane Water Filtration Plant Located at Shaft 5a of the Delaware Aqueduct ...... 3-5 3.2 Town of Newburgh/Town of New Windsor Joint Water Filtration Plant: Connection Options to the Catskill or Delaware Aqueducts ...... 3-8 3.3 Alternative 2: Expansion of City of Newburgh Water Treatment Plant to Serve as a Regional Facility...... 3-8 3.4 Alternatives 3A and 3B: Joint Town of New Windsor – Town of Newburgh Plant Supplied with Hudson River Water Pumped to the New Plant ...... 3-11 3.5 Alternative 4: Base Case – Separate Plants ...... 3-14 4. NEIGHBORING COMMUNITIES ...... 4-1 5. COST OF EACH ALTERNATIVE ...... 5-1 5.1 Joint Town of New Windsor/Town of Newburgh Plant Supplied with a New York City Catskill Aqueduct Water Tap, and Located at the Stewart International Airport ...... 5-4 5.1.1 Alternative 1a: Joint Town of Newburgh/Town of New Windsor Water Filtration Plant Located in the Town of Newburgh ...... 5-5 5.1.2 Alternative 1b: Joint Town of Newburgh/Town of New Windsor Water Filtration Plant Located in the Town of New Windsor ...... 5-5 5.1.3 Alternative 1c: Joint Town of Newburgh/Town of New Windsor 5 Mgd Water Filtration Plant Located in the Town of New Windsor With A 4.8 Mgd Membrane Filtration Plant Located At Shaft 5a of The Delaware Aqueduct ...... 5-5 5.1.4 Town of Newburgh/Town of New Windsor Joint Water Filtration Plant Connections to the Catskill Or Delaware Aqueducts...... 5-6 5.2 Alternative 2: Expansion of City of Newburgh Water Treatment Plant to Serve as a Regional Facility...... 5-6 5.3 Alternatives 3a And 3b: Joint Town of New Windsor – Town of Newburgh Plant Supplied with Hudson River Water Pumped to the New Plant ...... 5-7 5.4 Alternative 4: Base Case – Separate Plants ...... 5-7

ii Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

6. FINANCIAL ANALYSIS ...... 6-1 7. SUMMARY ...... 7-1 7.1 Results ...... 7-1 7.2 Cost of Water ...... 7-4 7.3 NYC Water Rate Implications in Relation to Alternatives ...... 7-6 7.4 Regional Approaches to Address Intermunicipal Water Supply Needs ...... 7-6 7.5 Recommendations\Next Step ...... 7-7 8. LITERATURE CITED ...... 8-1

APPENDICES

Appendix A Estimated Conceptual Costs Appendix B Estimated Conceptual Costs: Inclusion of Chadwick Lake

iii Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

LIST OF FIGURES

FIGURE TITLE PAGE

Figure ES-1 Current Water Supply Facilities in Northeast Orange County ...... ES-3

Figure ES-2 Overview of Regional Water Supply Alternatives (Major Facilities) .. ES-6

Figure 1 Current Water Supply Facilities in Northeast Orange County ...... 2-2

Figure 2 Overview of Regional Water Supply Alternatives (Major Facilities) ..... 3-3

Figure 3 Regional Water Supply Alternative 1A ...... 3-6

Figure 4 Regional Water Supply Facility 1B ...... 3-7

Figure 5 Regional Water Supply Alternative 1C ...... 3-9

Figure 6 Proposed Shaft 4 Tap ...... 3-10

Figure 7 Regional Water Supply Alternative 2 ...... 3-12

Figure 8 Regional Water Supply Alternative 3 ...... 3-13

Figure 9 Regional Water Supply Alternative 4 ...... 3-15

iv Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

LIST OF TABLES

TABLE TITLE PAGE

Table ES-1 Population and Water Supply Statistics for the Towns of Newburgh and New Windsor and the City of Newburgh (based on 2000 census data) ...... ES-2

Table ES-2 Current and Projected System Needs ...... ES-4

Table ES-3 Summary of Costs ...... ES-7

Table ES-4 Comparison of Alternatives - Costs & Rates ...... ES-10

Table 1 Population and Water Supply Statistics for the Towns of Newburgh and New Windsor and the City of Newburgh (based on the 2000 census) .... 2-1

Table 2 Current and Projected System Needs ...... 2-15

Table 3 Alternatives ...... 3-2

Table 4 Neighboring Communities Demand and Infrastructure ...... 4-2

Table 5 Summary of Costs ...... 5-2

Table 6 Alternative 1 Cost Summary ...... 5-4

Table 7 Comparison of Alternatives – Capital Investment ...... 6-2

Table 8 Comparison of Alternatives – Total Annual Costs ...... 6-3

Table 9 Comparison of Alternatives - Costs & Rates ...... 6-4

Table 10 Summary of Costs ...... 7-3

Table 11 Comparison of Alternatives - Costs & Rates ...... 7-5

v Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

EXECUTIVE SUMMARY

INTRODUCTION

Since 2008, the Orange County Water Authority (OCWA), the Orange County Department of Planning (OCDP), and the multitude of water purveyors within the cities, villages, and towns of the County have been working collaboratively to develop a water master plan for the County. This Orange County Water Master Plan finalized in August 2010 (August 2010, Water Master Plan) focuses on protecting and conserving the region’s water sources in addition to establishing a frame work to ensure that the County’s water supply will continue to meet the demand associated with the region’s growing population. One key recommendation of the Water Master Plan is to undertake a feasibility study to evaluate the potential engineering and economic requirements for modification and enhancement of the existing connections to the New York City Aqueduct System in the northeast section of the County that currently provides 11% of the region’s water supply. Given the breadth and scope of their existing water treatment and distribution systems and their association with the New York City Aqueduct System, the Towns of Newburgh, and New Windsor, and the City of Newburgh, are central to the development of such a regional water resource management strategy. The cooperative participation of the neighboring municipalities of the Towns of Montgomery, and Cornwall, and the Village of Cornwall, is also important because each of these municipalities has the potential to become part of a regional system as well due the fragmented nature and limited reliability of their existing supplies.

This Northeast Orange County Water Feasibility Study presents the results of a technical and economic assessment performed by the OCWA and its consultants, Henningson, Durham, and Richardson Architecture and Engineering, PC (HDR), McGoey, Hauser, and Edsall, P.C., and the Amawalk Consulting Group. This Study evaluated the feasibility of constructing a “regional” water treatment facility that would serve the multiple municipalities in the northeast section of the county and would provide a sustainable return on investment for all involved parties. The information obtained from this Study provides the foundation for implementing the preferred regional water supply option, i.e., the implementation initiative will ultimately lead to a Facility Plan, a financial implementation strategy and a Basis of Design Report for the preferred alternative.

This feasibility study was conducted over a three month period and followed a work-plan that was comprised of four key initiatives:

(1) Assessment and analysis of the existing water supply capabilities in the northeast section of the county and an evaluation of the capabilities of the existing systems in terms of meeting both current and future needs; (2) Identification of both individual and regional water supply options or alternatives that were technically feasible of meeting the water supply needs of the region; (3) Determination of the cost of each alternative; and (4) Assessment of the economic feasibility of the each alternative.

ES-1 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

BACKGROUND

The Towns of Newburgh and New Windsor and the City of Newburgh contain approximately 71,000 people or approximately 20% of the Orange County’s population. These municipalities also utilize a daily average of approximately 9.5 million gallons per day (mgd) which is approximately 25% of the County’s daily water supply demand (see Table ES-1, below). The total population within these municipalities is expected to increase to 79,500 people by 2018 with a corresponding increase in water demand to 10.5 mgd (Orange County Water Master Plan, August 2010). Each of the municipalities represents a water district within the County.

Table ES-1. Population and Water Supply Statistics for the Towns of Newburgh and New Windsor and the City of Newburgh (based on 2000 census data)

Water Population Demand (daily Capacity District Served average, gpd) (gpd) Sources Town of NYC Aqueduct (Delaware), Newburgh 22,800 2,868,060 5,960,000 Chadwick Lake City of Washington Lake, Brown’s Newburgh 28,000 3,870,569 9,500,000 Pond, NYC Aqueduct (Catskill Town of New NYC Aqueduct (Catskill); Windsor* 20,276 2,833,054 3,500,000 Brown’s Pond; *population numbers include a portion of the Town of Cornwall (Firthcliff Heights- 913 people)

Since this northeast section of the County has been classified as a “priority growth area” by the OCPD and water use amongst these municipalities is already linked to the New York City Aqueduct System as a result of numerous interconnections, an inter-municipal or “regional approach” to water supply management warrants of consideration. See Figure ES-1. The need for implementing a regional approach can be supported by the following water supply issues confronting the northeast section of the County:

• All three municipalities are dependent on the New York City aqueduct system (which runs through the northeast section of the County, i.e., the Catskill or Delaware aqueducts), for either their entire supply, or a portion of their supply during certain parts of the year or during drought conditions. Both aqueducts have either planned or unplanned outages within the next 10 years. These outages could result from water quality problems or from the need to perform repairs. An aqueduct shutdown can have a profound effect upon the water delivery to consumers in each of these water districts. A regional facility that offers increased reliability through access to different sources of supply can help each of these municipalities address supply shortages that result from aqueduct shutdowns.

• Both the Towns of Newburgh and New Windsor are in need of new or upgraded water treatment facilities. The Town of Newburgh needs a new facility due to a USEPA consent decree and the Town of New Windsor needs to upgrade and increase the capacity of its existing system- the construction of one state-of-the-art regional water treatment facility would result in cost efficiencies, energy conservation, and overall water management flexibility. ES-2 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study ULSTER C OUNTY

D Shaft 5A Tap e A l a q u w e a r d u e c t ORANGE C OUNTY

Chadwick Chadwick Lake Filtration Plant Lake Town of Newburgh 2.0 MGD ) MONTGOMERY Orange Lake

T O W N OF NEWBURGH

C I T Y OF NEWBURGH STEWART Washington Lake Filtration Plant INTERNATIONAL City of Newburgh AIRPORT 9.5 MGD ) Lake ) C Washington A a q t s u k i e d l l u c t T O W N O F NEW WINDSOR Silver Stream Reservoir Stewart Airport Filtration Plant Aqueduct Tap ) New Windsor/Stewart 0.5 MGD Riley Road Filtration Plant Aqueduct Tap New Windsor 3 MGD

Water Supply Sources CORNWALL- BLOOMINGCity or Town (Capacity in MGD) ON-HUDSON GROVEVillage ) < 1.0 V. WASHINGTONVILLEMunicipal Water Supply District T O W N OF ) 1.0 to 5.0 CORNWALL New Windsor Cons. W.D. ) > 5.0 City of Newburgh HIGHLANDS Aqueduct 0 1 2 Town of Newburgh Cons. W.D. Miles I

Figure ES1. Current Water Supply Facilities in Northeast Orange County FINAL DRAFT

• The lack of strategically designed interconnections amongst the three municipalities inhibits water movement and threatens overall reliability throughout the northeastern County region. A New York City funded interconnection between the Catskill and Delaware Aqueducts at Shaft 4 of the Delaware Aqueduct in Gardiner, New York, which is currently in the design phase, will present a number of advantages to both the Orange municipalities and the City of New York.

A regional system with built in reliability for the northeastern Orange County municipalities could also benefit the City of New York by allowing them increased flexibility which will allow New York City to perform more frequent aqueduct shutdowns with minimal disruption to the communities that depend on the Aqueduct system for their primary supply. Moreover, since such a project is mutually beneficial to these northeastern County communities and the City of New York, the potential for cost-sharing exists. It is important to note that a prolonged Delaware Aqueduct outage is planned for 2018; as such it is essential that the County municipalities prepare by increasing the overall flexibility of their respective systems in advance of this planned outage.

System Needs and Alternatives for Developing a Regional Water Supply Facility that Meets Future Needs

The first step in determining the size and configuration of the new facilities that would be required to meet the future needs of the three key northeastern County municipalities, was an assessment of each municipalities’ current, 10-year, and 20-year demand was made. See Table ES-2 below. In addition, a projected allotment was considered as part of the planning process for the neighboring municipalities of the Towns of Montgomery and Cornwall and the Village of Cornwall as well; These neighboring municipality allotments, which will be considered separately, were based on information obtained from interviews with the municipalities and data contained in the 2010 Orange County Water Master Plan.

Table ES-2. Current and Projected System Needs

Current 10-year 20-year Existing Demand Demand Demand Capacity Population (MGD) (MGD) (MGD) Water District (MGD) Served Avg. Max. Avg. Max. Avg. Max. Town of 5.96 22,800 2.81* 4.5 4.5 7.0 5.0 8.0 Newburgh City of Newburgh 9.50 28,000 3.87 4.5 5.0 5.5* 6.0 6.5* Town of New 3.50 20,276 2.83 4.0* 4.0 5.0* 6.0 7.0* Windsor 18.96 71,076 9.51 13.0 13.5 17.5 17.0 21.5 Total * Estimated based on population projections and interviews with the municipalities. * Town of Newburgh current demand does not include the Town of Marlborough; current demand would rise to 3.4 mgd if included.

ES-4 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

In order to address the projected system needs, four distinct water treatment alternatives for the northeast Orange County area were evaluated. With the exception of alternatives 1C and 4, it was assumed that the Town of Newburgh had the potential to receive relief from the USEPA concerning the Town’s consent decree requirement to construct a water filtration plant at Shaft 5A of the Delaware Aqueduct. In addition, all alternatives also assumed the continued operation of the Riley Road and Chadwick Lake water treatment facilities. These alternatives, which were developed in consultation with the OCWA and the northeast Orange County municipalities, are described below and are depicted on Figure ES-2:

(1) Alternative 1: Joint Town of New Windsor/Town of Newburgh Water Treatment Plant- this alternative has been approached from three perspectives: (1A) a plant is located at Stewart International Airport in the Town of New Windsor, (1B) a plant is located at Stewart International Airport in the Town of Newburgh, and (1C) a plant is located at Stewart International Airport in the Town of New Windsor with a smaller design capacity of 5 mgd and the Town of Newburgh would design and construct the filtration plant at Shaft 5A as mandated by the Town’s existing consent decree with the USEPA. All Stewart airport locations would use water supplied from a new tap which would be installed on the Catskill Aqueduct. The new or reconfigured tap would allow for both increased flow capacity at the withdrawal point from the invert of the Catskill Aqueduct, and reduced water elevations\flow rates in the aqueduct during partial aqueduct shutdowns. It was assumed that in the future, the Catskill Aqueduct could receive either Catskill or Delaware Aqueduct water given that the aqueduct interconnection at Shaft 4 of Delaware Aqueduct would be completed by 2015.

(2) Alternative 2: Expanded City of Newburgh Water Treatment Plant as a regional facility with some additional modifications to the existing Town of Newburgh and Town of New Windsor facilities, the City of Newburgh’s water system infrastructure.

(3) Alternative 3: Hudson River as a Water Source for a Joint Town of New Windsor/Town of Newburgh Regional Facility. Two locations were evaluated: Alternative 3A with the plant is located in the Town of New Windsor, and Alternative 3B with the plant located in the Town of Newburgh.

(4) Alternative 4: Town of New Windsor and the Town of Newburgh each Proceed to Develop Separate Plants (base case) to meet their future water supply needs.

CONCEPTUAL COST ESTIMATE FOR EACH ALTERNATIVE

A conceptual cost estimate was developed for the four alternatives identified for this study. The infrastructure required by each alternative was determined based on the supply needs of each municipality, existing infrastructure, and potential location of water treatment facilities. Table ES-3 below lists the upfront capital cost for the added capacity to be developed for each of the four alternatives; annual operation and maintenance cost have been determined as well.

ES-5 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study F Assumed Operational: Alt 1C and 4: Membrane Filtration Plant at Shaft 5A Tap Delaware Aqueduct Shaft 4 Tap Town of Newburgh and Tunnel 6 MGD All Alternatives D e ) A l a ORANGE q u w e a r d u e C OUNTY c t

Chadwick Lake Filtration Plant All Alternatives Retain Chadwick Town of Newburgh, 2.0 MGD Lake Alt 3 (alternative site): Joint River Water Intake ) and Desalination Plant Orange Town of Newburgh/New Windsor, MONTGOMERY 8 MGD Lake

)

T O W N OF

A NEWBURGH

e s Alt 1A: Joint Filtration Plant - Aqueduct Tap d k Construct

u i Town of Newburgh/New Windsor

c l

t 8 MGD C I T Y OF NEWBURGH ) STEWART INTERNATIONAL AIRPORT Washington Lake Filtration Plant Alt 2: Expand: Regional, 14 MGD ) / Lake ) Washington Alt 3 (alternative site): Joint River Water Intake and Desalination Plant Town of Newburgh/New Windsor, Alt 1B: Construct 8 MGD Joint Direct Filtration Plant - Aqueduct Tap Town of Newburgh/New Windsor All Alternatives Decommission 8 MGD Stewart Airport Plant - ) Aqueduct Tap Silver Stream T O W N O F New Windsor/Stewart Reservoir NEW WINDSOR -0.5 MGD )

Riley Road Filtration Plant - Aqueduct Tap Alt 1A, 1B, 1C, 2 and 3: Retain: Town of Newburgh/New Windsor 3 MGD Alt 4: Retain and Expand: New Windsor only, 6 MGD

Water Supply Sources T O W N OF City or Town (Capacity in MGD) CORNWALL- BLOOMING Existing CORNWALL ON-HUDSON Village New GROVE Plant Plant

V. WASHINGTONVILLENew Windsor Cons. W.D. ) ) 1.0 to 5.0

City of Newburgh ) ) > 5.0

Town of Newburgh Cons. W.D. / Decommissioned Plant HIGHLANDS

Aqueduct

Figure ES2. Overview of Regional Water Supply Alternatives (Major Facilities) FINAL DRAFT

Table ES-3. Summary of Costs

Cost Annual Upfront Added per O&M Alternative Capital Cost Capacity* Gallon Costs 1. Joint Town of Newburgh -Town of New Windsor Filtration Plant Supplied with New York City Aqueduct Water and Existing Riley Road Plant 1A. Located in Town of Newburgh $47,124,000 8 mgd $5.89 $2,880,000 1B. Located in Town of New Windsor $53,349,000 8 mgd $6.67 $3,348,000 1C. Located in Town of New Windsor and with Membrane Filtration Plant $61,277,000 5 mgd $12.26 $3,895,000 at Shaft 5A (which will have intermittent use during aqueduct shutdowns) Joint Water Filtration Plant Connection to the Catskill or Delaware Aqueducts $29,553,000 N/A N/A $219,000 2. Expansion of City of Newburgh Water Treatment Plant to serve as a $26,185,000 8 mgd $3.27 $3,097,000 Regional Facility and Existing Riley Road Plant 3. Joint Town of Newburgh – Town of New Windsor Desalination Plant Supplied with Hudson River Water Pumped to the New Plant, and Existing Riley Road Plant 3A. Located in Town of Newburgh $113,568,000 8 mgd $14.20 $8,602,000 3B. Located in Town of New Windsor $115,243,000 8 mgd $14.41 $8,617,000 4. Base Case – Separate Plants Town of Newburgh $27,641,250 6 mgd $4.61 $1,641,000 Town of New Windsor $16,280,000 3 mgd $5.43 $1,436,765 Notes: Costs in 2010 Dollars. The cost per gallon was estimated based on the estimated capital cost and the added capacity. Alternative 2 O&M costs were based on a 14 mgd facility. *Added capacity plus existing capacity will satisfy the 10 year and 20 year demand from Table ES-2; Chadwick Lake safe yield of 2.0 mgd has not be included in this added capacity determination in order to evaluate the most conservative condition (Chadwick Lake not available on a continuous basis due to seasonally occurring water quality constraints)- the reduced costing for an added capacity of 6 mgd as opposed to 8 mgd (Chadwick Lake in continuous operation with no seasonal use constraints) is described in Appendix B; Alternative 1C: total cost of $61,277,000 includes $27,641,000 for the 6 mgd membrane filtration plant at Shaft 5A and $33,635,000 for a 5 mgd direct filtration plant in the Town of New Windsor at Stewart International Airport; the membrane plant is assumed to be off-line during prolonged aqueduct shutdowns.

ES-7 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

Based on these estimated costs, Alternative 2: Expansion of City of Newburgh Water Treatment Plant to serve as a Regional Facility for the Towns of Newburgh and New Windsor and the City of Newburgh had the lowest estimated capital cost and corresponding cost per gallon. This alternative also assumed that the Town of New Windsor’s Riley Road plant would continue to operate at a 3 mgd capacity and the Town of Newburgh’s Chadwick Lake plant would not be decommissioned.. Benefits accrued by expanding the existing City of Newburgh plant include the following:

(1) Excess capacity currently available at the plant would be utilized; the Lake Washington supply also has a lower cost than NYC Aqueduct water, however at full capacity, the expanded facility would have to consistently supplement the Lake Washington source with NYC Catskill Aqueduct water; (2) The existing pump station and pipeline that transmits water from the NYC Catskill aqueduct connection to the plant is sized appropriately to meet future demand so that no construction modifications will be necessary; (3) Operating and maintenance costs can be spread across the three municipalities, thus reducing the individual O&M costs to each participant; cost sharing can be facilitated through the enactment of intermunicipal agreements. (4) Dual treatment technologies would be utilized to optimize treatment and reduce costs, i.e., conventional treatment for Washington Lake source water and direct filtration for aqueduct water. (5) Assuming the elimination of aqueduct taps at Stewart Airport and Shaft 5A of the Delaware Aqueduct, the need for multiple connections to the NYC Aqueduct System would no longer be required. As such, there would less administrative and engineering oversight required by NYC water supply staff. This mutually beneficial situation would support the formulation of a cost-sharing arrangement between the various stakeholders. (6) Both the total and incremental costs and rates would be significantly less for Alternative 2 than all other options (see below); and (7) Opportunity would be provided to investigate the various institutional alternatives to establishing a regional water supply.

COST OF WATER

A financial analysis was performed for the engineering alternatives. The purpose of the financial analysis was to illustrate the relative financial impacts of each of the alternatives on the water utilities and a typical single family customer. The estimated capital costs and operating expenses were adjusted to provide estimates as of 2015, the expected first year of operation. It was assumed that the capital costs of each alternative would be financed through the proceeds of bonds. The annual debt service on these bonds plus the estimated annual expenses to operate and maintain the systems would represent the annual revenue requirements that would be met through revenues from user charges. The results are presented as a cost per million gallons and as a rate per 80,000 gallons which is assumed to be the annual usage for an average single family homeowner, recognizing that some residents would use more or less than this amount.

ES-8 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

The results of the financial analysis are presented in two sets of columns in Table ES-4. The first set of columns (H. through K.) present the rate for 80,000 gallons and the cost per million gallons assuming that all customers (both existing and future) pay a share of the costs of the new systems based on gallons used. The results are presented for both 2015 and 2024 (the tenth year of operation). The results range from a low of $92 per homeowner in year 10 for Alternative 2 to a high of $593 for Alternative 3B. These amounts apply only to the new systems. The second set of columns (L. and M.) assume that only future customers pay a share of the costs of the new systems based on gallons used. The cost per homeowner in Year 10 ranges from a low of $312 for Alternative 2 to $1,761 for Alternative 3B. In all cases, Alternative 2 had the lowest cost.

If only future customers are to pay for each of these water systems, there is an important policy issue to be addressed in Year 1 and for at least several years thereafter. Since debt service and some operating expenses will have to be paid beginning in 2015 and incremental water demand will be zero or a limited quantity, the question is who will pay the vast majority of the debt service and expenses? If existing customers will benefit from the new systems, the yet undefined regional water supply entity or inter-municipal organization may wish to consider a combination of funding strategies, particularly for the initial years of operation. These strategies will need to be investigated in future financial analyses.

NYC WATER RATE IMPLICATIONS IN RELATION TO ALTERNATIVES

With the exception of Alternative 2, the cost of NYC water was carried across all other alternatives involving the Towns of New Windsor and Newburgh and was not factored in the overall operation and maintenance (O&M) cost since it was assumed to be a constant. However, the use and resultant cost of NYC water has a profound effect upon all the involved municipalities. Given the projected NYC water rate increases, the continued use of NYC water in the future will present a significant hardship to the northeast Orange County municipalities. As noted above, the use of Washington Lake’s excess capacity as described in Alternative 2 presents an opportunity for O&M cost savings (for the purpose of this exercise, the wholesale cost of NYC water was considered to be an operational cost). However, the lake’s excess capacity is currently undefined due to a lack of information concerning the safe yield of the lake. Nonetheless, Alternative 2 will allow for less of a dependence on the NYC Catskill Aqueduct source and thus will help to reduce overall O&M costs. Moreover, less reliance on the use of NYC water is further compounded by the fact the cost of NYC water has been increasing primarily due to capital investments in the water supply system together with increasing property taxes on watershed properties. Long-term water consumption has been declining. The current rate for water purchases from the City within the monthly entitlement quantity is $1,149.72 per million gallons or about $0.86 per hundred cubic feet. For a single family household using 80,000 gallons of water per year, this equates to about $92 per year. Based on the most recent projections prepared in May 2010, the wholesale rate is projected to increase to $1,312.20 effective July 1, 2011, to $1,449.88 effective July 1, 2012 and to $1,585.50 effective July 1, 2013. These projections are preliminary and subject to change.

Water use in each month by an upstate customer that is above the entitlement quantity, also known as excess use, is currently billed at the rate of $3,943.85 per million gallons. This rate will increase in the future at the same percentage that water rates increase within the City of New York. Based on the most recent projections prepared in May 2010, the current forecast of future percentage increases in rates is 9.8% per year for the years beginning July 1, 2011, July 1, 2012 and July 1, 2013. These projections are also preliminary and subject to change. ES-9 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

Table ES-4. Comparison of Alternatives - Costs & Rates

Cost & Rates Based Costs & Rates Based on Total Sales on Incremental Sales Cost Cost Per Per 80K Cost Per 80K gals, Rate Per gals, Rate Per 80K gals, Rate Per Year 1 MG, Year Year 10 MG, Year Year 10 MG, Year Alternative (H.) 1 (I.) (J.) 10 (K.) (L.) 10 (M.) 1. Joint Town of Newburgh – Town of New Windsor Filtration Plant Supplied with New York City Aqueduct Water and Existing Riley Road Plant 1A. Located in the Town of New burgh $287.81 $3,597.66 $217.21 $2,715.13 $645.55 $8,069.44 1B. Located in the Town of New Windsor $329.78 $4,122.21 $249.32 $3,116.48 $740.98 $9,262.26 1C. Located in the Town of New Windsor and with Membrane $381.01 $4,762.65 $288.30 $3,603.72 $856.83 $10,710.37 Filtration Plant at Shaft 5A 2. Expansion of City of Newburgh Water Treatment Plant to $112.61 $1,407.56 $92.32 $1,153.96 $312.35 $3,904.37 Serve as a Regional Facility and Existing Riley Road Plant 3. Joint Town of Newburgh – Town of New Windsor Desalination Plant Supplied with Hudson River Water Pumped to the New Plant, and Existing Riley Road Plant 3A. Located in Town of Newburgh $768.46 $9,605.80 $588.27 $7,353.33 $1,748.35 $21,854.31 3B. Located in Town of New Windsor $774.76 $9,684.48 $592.58 $7,407.25 $1,761.16 $22,014.54 Base Case – Separate Plants Town of Newburgh $334.47 $4,180.93 $237.10 $2,963.75 $631.33 $7,891.65 Town of New Windsor $237.83 $2,972.83 $196.08 $2,450.97 $670.35 $8,379.38 Notes: (H.) Total annual costs divided by the total sales in year 1 (2015); expressed as $ per 80,000 gallons which may be a reasonable annual quantity for a single family household. (I.) Total annual costs divided by the total sales in year 1 (2015); expressed as a rate per million gallons (MG). (J.) Total annual costs divided by the total sales in year 10 (2024); O&M cost has increased, debt service remains the same; expressed as $ per 80,000 gallons. (K.) Total annual costs divided by the total sales in year 10 (2024); expressed as a rate per million gallons (MG). (L.) Total annual costs divided by the incremental sales in year 10 (2024); expressed as $ per 80,000 gallons which may be a reasonable annual quantity for a single family household. (M.) Total annual costs divided by the incremental sales in year 10 (2024); expressed as a rate per million gallons (MG).

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REGIONAL APPROACHES TO ADDRESS INTERMUNICIPAL WATER SUPPLY NEEDS

In order to facilitate the design, construction, and operation of a regional water supply facility for the northeast section of the county, the municipal stakeholders may want to investigate the various institutional alternatives to establishing a regional water supply Some of the reasons why other municipalities have evaluated formulating a regional water supply arrangement, i.e., a water authority, a joint water works, a water board, formulating inter-municipal agreements, are listed below:

• A board will typically manage the assets well including making needed capital improvements since it is focused solely on wastewater and water facilities;

• In situations where multiple jurisdictions are served, a board may offer the opportunity to revisit the business (including financial) relationships between the communities and can provide representation for multiple parties;

• The authority/board could assume responsibility for financing future municipal improvements relating to water supply facilities which, for some municipalities, may require significant investments in the future; and

• Water and sewer authorities in New York State generally have an excellent track record including improved bond ratings – better bond rating translate to lower costs of borrowing money for infrastructure improvements which provides benefits to ratepayers.

The bond rating agencies and investors look very favorably upon the creation of water boards and authorities in New York State and the bonds issued by these authorities – it is viewed as a positive step from a credit rating perspective for both the wastewater or water system and the municipality which creates the board and authority since both the cost of service and the revenues to pay for the services will be separated and dedicated to the maintenance and improvement of the system.

As noted in the August 2010 County’s Water Master Plan, the OCWA can facilitate such a regional planning process by assisting in the establishment of a regional authority amongst the various stakeholders and providing a financing mechanism at the early stages of the initiative. The OCWA can also act as the coordinating entity with the New York State Department of State (DOS), the Environmental Facilities Corporation, and other involved municipalities, i.e., NYC, Orange County towns and villages.

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RECOMMENDATIONS/NEXT STEPS

Next steps to be taken in this regional water supply planning initiative include the following:

1. The Towns of Newburgh and New Windsor, and the City of Newburgh should consider forming the Northeast Orange County Municipal Alliance\Workgroup for the purpose of implementing intermunicipal agreements for a regional water supply and other shared infrastructure and municipal projects. Other communities, such as the Towns of Cornwall and Montgomery and the Village of Cornwall may want to consider membership in the alliance\workgroup as well;

2. The OCWA in conjunction with the OCDP and the Northeast Orange County Municipal Alliance should submit a NYSDOS Local Government Efficiency grant application this December 1, 2010 for an Efficiency Implementation Grant. This grant will provide the funding necessary to carry out the implementation of the regional water supply initiatives presented in this feasibility study. The implementation plan will (1) investigate the various institutional alternatives to establishing a regional water supply (2) develop a Facility Plan for the preferred alternative which defines the project goals and objectives by focusing on cost, operability, reliability, and constructability of the project. The exercise will include the performance of a safe yield analysis for both Washington Lake and Chadwick Lake, In addition, the Plan will articulate how the preferred alternative best meets the needs of the municipalities involved, and will present a baseline scope , schedule (including construction phase), and a budget (3) develop a Basis of Design Report (BODR). This report will establish the major design criteria for the proposed project and will include preliminary drawings and an itemized list of key scope elements. It is to provide a concise description of the project scope based on the conclusions of the Facility Plan, The BODR should be supplied to the NYS Environmental Facilities Corporation for inclusion in their Intended Use Plan and (4) evaluate the institutional and financial alternatives associated with the preferred alternative including but not limited to an intermunicipal agreement, formation of a regional water authority or, formation of a municipal joint water works. ..

3. The feasibility of utilizing groundwater as an alternative source of supply should be evaluated. Test borings have been made over the years that indicate with a reasonable degree of certainty that below the Hudson River lays a freshwater aquifer that is sealed from the river itself by a non-permeable layer of clay. While the exact capacity of this aquifer is unknown it has been estimated to be of sufficient capacity to potentially fulfill the additional water quantities addressed in this report. The use of groundwater as a source of supply should be more fully explored.

4. The Town of Newburgh should consider utilizing the results of this study to assist in applying for a modification to the USEPA with respect to its existing consent decree requiring the imminent design and construction of a water filtration plant at Shaft 5A of the Delaware Aqueduct;

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5. The New York City Department of Environmental Protection should be included in this water supply planning initiative during the project’s early stages since the DEP plays a critical role in the supply (and operation) of source water to the Orange County municipalities. In addition, since the project is mutually beneficial to both the Northeast Orange County municipalities and the City of New York, the potential for cost-sharing exists and warrants exploration.

6. The OCWA should consider facilitating or coordinating meetings of the newly formed Northeast Orange County Municipal Alliance\Workgroup until such time as the workgroup can begin to operate independently.

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1. INTRODUCTION AND PROJECT OVERVIEW

Since 2008, the Orange County Water Authority (OCWA or Authority), the Orange County Department of Planning (OCDP), and the multitude of water purveyors within the cities, villages, and towns of the County have been working collaboratively to develop a water master plan for the County. The Orange County Water Master Plan, finalized in august 2010 (August 2010 Orange County Water Master Plan) focuses on protecting and conserving the region’s water sources in addition to establishing a frame work to ensure that the County’s water supply will continue to meet the demand associated with the region’s growing population. One key recommendation of the master plan is to undertake a feasibility study to evaluate the potential engineering and economic requirements for modification and enhancement of the existing connections to the New York City Aqueduct System in the northeast section of the County that currently provides approximately 11% of the region’s water supply. Given the scope of work of such a comprehensive feasibility study would entail the development of a basis of design report or facility plan as well as an assessment of implementing a “smart growth initiative” or regional/shared approach to managing water resources in this area of the County. The cooperative participation of the Towns of New Windsor, Newburgh, Montgomery, and Cornwall, the Village of Cornwall, and the City of Newburgh will help to advance such a regional initiative. In particular, given the breadth and scope of their existing water treatment and distribution systems, the Towns of Newburgh and New Windsor and the City of Newburgh are central to the development of such a regional water resource management strategy. A possible outcome of the study would be a recommendation to design and construct a “regional” water filtration facility which would serve multiple municipalities in the northeast section of the County. Such an inter-municipal facility would provide high quality drinking water to thousands of County residents and would greatly improve cost efficiencies.

However, due to federal Safe Drinking Water Act requirements, there is a pressing need to carry out a feasibility study in short order. In particular, the Town of Newburgh is under a USEPA consent decree to design a water treatment plant by the fall of 2010. As such, in order to come to a determination as to whether such a regional plan is feasible, the OCWA has determined that there was an immediate need to evaluate the feasibility of constructing a number of regional alternatives and their associated costs. Accordingly, the OCWA commissioned Henningson, Durham, and Richardson Architects and Engineers, PC (HDR), McGoey, Hauser, and Edsall, P.C. (MHE), and the Amawalk Consulting Group to undertake a Study which would assess the technical and economic viability of intermunicipal water supply consolidation. The study evaluated the feasibility of constructing a “regional” water treatment facility that would serve the multiple municipalities in the northeast section of the county and would provide a sustainable return on investment for all involved parties. Moreover, the urgency to perform this preliminary study was further compounded by the Town of Newburgh’s pressing consent decree. The results of the study have the potential to assist the Town of Newburgh if it chooses to apply for a modification to the USEPA with respect to its existing consent decree requiring the imminent design and construction of a water filtration plant at Shaft 5A of the Delaware Aqueduct. Therefore, the Authority had determined that it was strategically important in terms of establishing greater stakeholder participation to advance the feasibility study as soon as possible.

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In addition, the study will serve as the foundation for the development of the more comprehensive implementation plan which would include a facility plan and a basis of design report for the preferred regional water supply alternative.

The subsequent Implementation Plan will be supported in-part by a Local Government Efficiency Grant (LGE) grant if the County is selected to receive such a grant in 2011. This grant is discussed in greater detail below.

1.1 NEW YORK STATE DEPARTMENT OF STATE LOCAL GOVERNMENT EFFICIENCY GRANT

The Orange County Department of Planning (OCDP) is currently preparing an application for a New York State Department of State (NYSDOS) LGE grant which, if approved, will provide funding to support the more comprehensive or second phase of this preliminary study. The NYSDOS LGE grants allow local governments (i.e., towns, villages, cities) throughout New York State need to look for ways to be more efficient and share municipal services and/or facilities among themselves. The regionalization of services when feasible will help to prevent future increases in local property taxes and address current budget shortfalls. The NYSDOS has been supportive of such inter-municipal initiatives through the LGE Grant Program (formerly known as the Shared Municipal Services Incentive Grant Program). The NYSDOS website describes the program as: “The Shared Services Program was established by the 2005-2006 New York State Budget, to provide technical assistance and competitive grants to two or more units of local government for the development of projects that will achieve savings and improve municipal efficiency through shared services, cooperative agreements, mergers, consolidations and dissolutions. With the creation of the Shared Services program, New York State is committed to working with local governments to control costs while maintaining the quality service delivery provided by New York’s local governments. This program has been expanded with the new ‘Local Government Efficiency’ grant program administered by the New York State Department of State.”

The OCDP has been active in the past with this program through participation in the Mid-County Water Supply Feasibility Study. The current application cycle includes four specific grant application opportunities. The OCDP plans to submit a grant application on December 1, 2010 for an “Efficiency Implementation Grant.” The funding obtained from this grant will allow the County to advance the preliminary work presented in this study.

1.2 PROJECT APPROACH

This feasibility study was conducted over a three month period and followed a workplan that was comprised of the four key initiatives listed below:

• Assessment and analysis of the existing water supply capabilities in the northeast section of the County, ands an evaluation of the capabilities of the existing systems in terms of meeting both current and future needs;

• Identification of individual and regional water supply options or alternatives that were technically feasible of meeting the water supply needs of the region; 1-2 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

• Determination of the cost of each alternative; and

• Assessment of the economic feasibility of the each alternative.

The assessment phase of the project involved meeting with each of the participating municipalities. The following meetings with municipal officials occurred during the first month of the project:

1- Town of Montgomery (July 13): Michael Aiello (Town Engineer), Michael Hayes (Town Supervisor), David Church (OCWA), Michael Principe (HDR), and Richard McGoey (MHE);

2- Town of Newburgh (July 14): James Osborne (Town Engineer), Wayne Booth (Town Supervisor), Michael Principe (HDR), and Richard McGoey (MHE);

3- Town of Cornwall (July 20): Mark Edsall (Town Engineer), Kevin Quigley (Town Supervisor), Michael Principe (HDR), and Richard McGoey (MHE);

4- City of Newburgh (July 23): Craig Marti (City Engineer), David Church (OCWA), Michael Principe (HDR), and James Farr (MHE); and

5- Town of New Windsor (July 27): George Green (Town Supervisor), Michael Principe (HDR), and Richard McGoey (MHE);

1.3 ALTERNATIVE SELECTION

The suite of technically feasible water supply alternatives discussed in Section 3 of this report were based on the input the project team received from the participating municipalities and from the output of two project workshops that were held over the course of the study.

Infrastructure and Operation and Maintenance Cost Estimating

The capital and operations and maintenance costs for each of the alternatives were determined as follows:

1. The estimated capital cost for each alternative was calculated by adding the following costs to the total construction cost:

2. A bid market allowance corresponding to 5% of the total construction costs was assumed.

3. A contractor’s overhead and profit corresponding to 10% of the total construction cost was assumed.

4. The cost for design engineering and construction management was assumed to be 20% of the total construction cost.

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5. The capital and O&M costs for the membrane filtration plant to be constructed at Shaft 5A under Alternative 1C was estimated for a future capacity of 6 mgd based on the current design capacity of the membrane filtration plant (personal communication with J. Osborne, Town of Newburgh Engineer).

6. The operation and maintenance (O&M) costs were estimated based on the January 2010 version of the HDR Cost Estimating Guideline. This guideline was developed by HDR in 2004 to assist the Environmental Protection Agency (EPA) on creating their cost estimating manuals. The cost estimating guideline includes operation and maintenance costs for conveyance and treatment infrastructure at different flow capacities. The O&M costs for the conveyance infrastructure are generally defined in the guideline as a percentage of construction cost as follows:

7. The O&M costs for pipelines and wells are estimated as approximately 1% of the total construction cost of the pipeline or well. The cost of the taps to the Catskill aqueduct was assumed to be similar to the cost of the pipelines and wells, and was estimated as 1% of the tap construction cost.

8. The O&M costs for pump stations correspond to 2.5% of the pump station construction costs. This cost includes the entire power infrastructure but not the energy cost for pumping. The pumping energy cost was determined separately based on the estimated horse power of the pumps at a given flow capacity and the Central Hudson Gas and Electric’s average residential rate per kilowatt-hr from 2010 to 2012.

9. The O&M costs were escalated from 2008 dollars to 2010 dollars based on the Engineering News Record (ENR) construction cost index (CCI) increment of 3% between 2008 and 2009. In addition, the O&M costs were prorated according to the planned flow capacity, and were escalated to New York State construction costs, which according the RS Means cost books, are 15% to 30% above the national average construction costs.

10. The total estimated project cost does not include sales tax, permitting, legal costs, land acquisition, unusual geotechnical costs, environmental impact, and decommission of existing plants.

1.4 FINANCIAL ANALYSIS

The first step in the financial analysis involved an adjustment to the upfront capital investment (in 2010 dollars) to the estimated mid-point of construction in order to provide projected bid prices and related costs for each of the alternatives at the time of construction. It is assumed that construction would begin in 2013 and be completed in 2015; thus, the year 2014 was used as the mid-point of construction. The Upfront Capital Investment figures for each of the options are inflated at the rate of 3% annually for a period of four years. The actual rate of inflation in such costs between 2010 and 2014 could be higher or lower than the assumed rate.

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It is assumed that funds will be borrowed to pay for the Upfront Capital Investment and that the interest payable on these borrowed funds will be capitalized (i.e., paid for through the proceeds of borrowed funds) during the period of construction. The interest during construction used in the financial analysis illustrates the estimated interest cost based on the assumptions that the average principal amount outstanding during the two-year period (2013 to 2015) will be two- thirds of the total upfront capital investment and that interest is computed on a simple basis at 3% annually. The interest rate assumption is much higher than what would be available in the financial markets at the time of this analysis (October 2010) but there is no certainty that interest rates at the time of financing will be higher, lower or the same as current rates.

There will be costs associated with the issuance of debt including underwriter’s fees, legal fees, printing costs for documents, etc. An allowance of 1.5% of the needed funds has been included to provide for the cost of issuance. In the event that the agency responsible for borrowing the funds is required to deposit monies into a debt service reserve fund, it may also be necessary to include in the cost of issuance an allowance for such deposits (typically equal to one year of principal and interest payments on the bonds). Such a deposit will increase the size of the bond issue and increase the debt service on the bonds compared to the results presented in this analysis. Interest earnings on the debt service reserve fund would help offset a portion of the increase in debt service.

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2. BACKGROUND

The Towns of Newburgh and New Windsor and the City of Newburgh contain approximately 71,000 people or approximately 20% of the Orange County’s population. These municipalities also utilize a daily average of approximately 9.5 million gallons per day (mgd) which is approximately 25% of the County’s daily water supply demand (see Table 1, below). The total population within these municipalities is expected to increase to 79,500 people by 2018 with a corresponding increase in water demand to 10.5 mgd (Orange County Water Master Plan, August 2010). See Figure 1.

Table 1. Population and Water Supply Statistics for the Towns of Newburgh and New Windsor and the City of Newburgh (based on the 2000 census)

Water Population Demand (daily Capacity (gpd) District Served average, gpd) Sources Town of New York City Aqueduct Newburgh 22,800 2,868,060 5,960,000 (Delaware); Chadwick Lake Washington Lake; Brown’s City of Pond; New York City Newburgh 28,000 3,870,569 9,500,000 Aqueduct (Catskill) Town of New New York City Aqueduct Windsor* 20,276 2,833,054 3,500,000 (Catskill); Brown’s Pond; Total 71,076 9,571,683 18,960,000 Notes: gpd = gallons per day mgd = million gallons per day * population numbers include a portion of the Town of Cornwall (Firthcliff Heights-913 people)

As such, given that the northeast portion of the County has been classified as a “priority growth area” by the Orange County Department of Planning and water use amongst these municipalities is already linked as a result of numerous interconnections, an inter-municipal or “regional approach” to water supply management warrants consideration. The need for this type of regional approach is further supported by the following water supply issues confronting the northeast section of the County:

• All three municipalities are dependent on the New York City Aqueduct system (which runs through the northeast section of the County, i.e., the Catskill or Delaware aqueducts) for either their entire supply or a portion of their supply during certain parts of the year or during drought conditions. Both aqueducts have either planned or unplanned outages. These outages could result from water quality problems or from the need to perform repairs. An aqueduct shutdown can have a profound effect upon the water delivery to consumers in each of these water districts.

• Both the Towns of Newburgh and New Windsor are in need of new or upgraded water treatment facilities - the construction of one state-of-the-art regional water treatment facility would result in cost efficiencies, energy conservation, and overall water management flexibility. 2-1 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study ULSTER C OUNTY

D Shaft 5A Tap e A l a q u w e a r d u e c t ORANGE C OUNTY

Chadwick Chadwick Lake Filtration Plant Lake Town of Newburgh 2.0 MGD ) MONTGOMERY Orange Lake

T O W N OF NEWBURGH

Figure 1. Current Water Supply Facilities in Northeast Orange County FINAL DRAFT

• The lack of strategically designed interconnections amongst the three municipalities inhibits water movement and threatens overall reliability throughout the northeastern County region. A proposed interconnection between the Catskill and Delaware Aqueducts at Shaft 4 of the Delaware Aqueduct in Gardiner, New York will present a number of advantages to both the Orange County municipalities and the City of New York.

A regional system with built in reliability for the northeastern Orange County municipalities could benefit the City of New York by allowing for increased flexibility which will allow New York City to perform more frequent aqueduct shutdowns with minimal disruption to the communities that depend on the aqueduct system for their primary water supply. It is important to note that a prolonged Delaware Aqueduct outage is planned for 2018. The Orange County Water Master Plan recommended that a regional interconnection strategy be developed with the OCWA playing a key role as both a facilitator between the County municipalities and the City of New York in terms of advancing the various aqueduct connections, and as a regional coordinator between each of the Orange County municipalities. This feasibility study is the first step in that process.

2.1 EXAMPLES OF REGIONAL APPROACHES TO ADDRESS INTER- MUNICIPAL WATER SUPPLY NEEDS

2.1.1 THE WESTCHESTER JOINT WATER WORKS

The Westchester Joint Water Works was created under a special act of the New York State legislature in 1927, and is a non-profit public benefit corporation which operates the water systems of its three member municipalities consisting of the Village of Mamaroneck, the Town of Mamaroneck and the Town/Village of Harrison. Each municipality owns its own mains, hydrants, services and meters. The Westchester Joint Water Works jointly owns the supply and transmission mains, pump stations and storage facilities, and operates the entire system as a unit. The Westchester Joint Water Works supplies water to over 14,800 domestic retail customers and sells water on a wholesale basis to the Village of Larchmont, United Water New Rochelle and the Aquarion Water Company of New York. All of the water is purchased from the City of New York through two connections, one to the Delaware Aqueduct in Yonkers and the other to Rye Lake, the eastern part of Kensico Reservoir in Harrison. The system includes over 250 miles of pipe ranging in size from 1 inch to 36 inches, and provides fire protection through over 1,900 hydrants.

2.1.2 NORTHERN WESTCHESTER JOINT WATER WORKS

The Northern Westchester Joint Water Works was established by the Towns of Cortlandt and Yorktown and the Town of Montrose improvement district pursuant to New York State Law (1927), Chapter 654. The Town of Somers became a member of the Northern Westchester Joint Water Works soon after its formation. The Cortlandt consolidated water district joined Yorktown and the Montrose improvement district in a new corporation known as the Northern Westchester Joint Water Works (NWJWW). The NWJWW assumed ownership of the Amawalk Water Treatment Plant, which was upgraded to a 7 mgd capacity, and the Montrose Improvement

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District Treatment Plant has been shutdown. The new NWJWW Treatment Plant which draws off of the Catskill Aqueduct has been operating since the summer of 2000. A new water pipeline was completed in the Town of Cortlandt to connect the two treatment facilities. This connection afforded the water works the ability to meet the maximum daily demand for the three entities within its jurisdiction. In addition the Cortlandt Consolidated Water District continues to be supplied, when necessary, by the City of Peekskill.

2.1.3 ORANGE COUNTY WATER AUTHORITY

The OCWA is Orange County’s water supply agency. It is a public corporation established by New York State Law on August 5, 1987 to address the long term water supply needs of Orange County, focusing on water supply, water resource protection, watershed planning, and conservation. The OCWA consists of a five-person board appointed by the County Executive with the concurrence of the County Legislature. The Authority has the power to construct, improve, maintain, develop, expand or rehabilitate water facilities; to enter into contracts for the wholesale provision of water; to apply for and to accept any grants or gifts or loans of funds; to produce, develop, distribute and sell water; and to enter into agreements with other authorities, municipalities, etc. for the interconnection of facilities and exchange or interchange of water. In summary, the OCWA is endowed with broad governmental powers to act in the public interest to augment the water supplies provided by municipalities within Orange County through the ownership and/or operation of water supply facilities, and to improve the overall use of water available from those municipalities through coordination and planning.

2.1.4 MOHAWK VALLEY WATER AUTHORITY

Background The Upper Mohawk Valley Regional Water Authority is a separate legal entity created by an act of the state legislature in 1994. The Authority has the power to borrow money, issue debt, and enter into other obligations for the purpose of maintaining and improving the Regional System. The Authority entered into agreements requiring the Upper Mohawk Valley Regional Water Board to fix rates sufficient to pay the costs of operating and financing improvements to the System and to require the Board to adequately maintain the Regional System.

The Board is also a separate legal entity created by act of the state legislature in 1994. The Board is authorized to own the system and to fix and collect rates, fees, and charges adequate to pay the costs of the Regional System. The Board filed and subsequently received a “Certificate of Amendment of Assumed Name” changing the name of the public benefit corporation from the Upper Mohawk Valley Regional Water Board to the Mohawk Valley Water Authority (the “Authority”).

The Regional System provides retail water service to over 37,000 metered accounts. About 50% of the System’s meters are located in the City of Utica. Parts of the Towns of Trenton, Marcy, Deerfield, Whitestown, New Hartford and Westmoreland and eight Villages in Oneida County are also served by the Regional System on either a retail or a bulk user basis. Service is also provided to a portion of the Towns of Frankfurt and Schuyler in Herkimer County. The Regional System also serves the State University of New York Institute of Technology at Utica/Rome, Hamilton College and the State of New York Midstate Correctional Facility.

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Reasons for Creating the Authority

The implementation of the Authority offered a number of opportunities for region:

• The Authority prepared and implemented a capital improvement program for the entire system – prior to that time improvements had typically been made only for the water treatment facility and a significant backlog of needed work had developed for the remaining infrastructure;

• The structure of the Authority provided for representation by multiple communities (very small communities share a seat through a rotation process) – previously, the system was managed by the City of Utica and the outside-of-City customers had no voice in budgeting, rate-setting or the use of funds received;

• The structure made sure that all funds generated by user revenues paid principal and interest on debt and required expenses and that surplus funds were retained within the system – previously, there were concerns over whether or not surplus funds were being used to pay some general fund expenses of the City; and

• The credit rating of the City of Utica below investment grade at the time the Authority acquired the system and the State Comptroller assisted the City by purchasing a short-term note – since its formation, the Authority has worked diligently to improve its financial position and is now rated A by the bond rating agencies.

2.1.5 CAYUGA COUNTY COMMUNITIES

Background

To ensure the sustainability of the water and sewer systems into the foreseeable future, the City of Auburn, NY commissioned a high level master plan to determine the 10-year infrastructure capital investment needs, along with the corresponding rate projections. A brief summary of the key conclusions of the Master Plan is presented below.

• Over $37 million in improvements is needed in the next 10 years; over 60% of this amount is for facilities that serve the City, the County Water and Sewer Authority (“CCWSA”) and the communities that receive water and/or wastewater services from the City;

• The preceding amount does not address all of the needed improvements but will take care of the high priority needs;

• Water rates and sewer rates will have to be increased to pay for the improvements;

• The City’s customer base is declining while the customer base outside of the City is slowly growing – the City cannot afford to finance these improvements on its own; and

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• If the City alone is responsible for borrowing funds to make the needed improvements (as it would under the status quo), the City’s credit rating will make it more expensive for all users of the water system and wastewater system compared to the interest rates available to a number of water authorities in New York State.

Recognizing the above findings and conclusions, the City, the CCWSA and the participating communities (the “Participants”) are seeking the most economical and practical approach to financing and implementing the needed infrastructure improvements. The Participants applied for and received a Local Government Efficiency Grant from the State of New York (the Phase 1 grant) to consider whether a regional approach would offer a more practical solution to the financing requirements and other related needs. The study identifies the regionalization alternatives and provides information to help local leaders decide if they wish to stay with the current structure for providing services or move forward to some type of regional approach.

Some Reasons Why Other Cities Have Created Water Authorities/Boards

• A board will typically manage the assets well including making needed capital improvements since it is focused solely on wastewater and water facilities;

• The authority/board could assume responsibility for financing future municipal improvements relating to stormwater facilities which, for some municipalities, may require significant investments in the future; and

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Status of the Cayuga County Efforts

With the facilitation provided by the City of Auburn, the Participants formed an Inter-municipal Task Force or Working Group of local leaders to carry out the project and consider all matters relating to the option of regionalization. The Participants retained a consulting team to prepare for and facilitate a series of workshops to review existing conditions, options, policy issues and related matters. Six workshops have been conducted to date and preferences have been expressed on a number of important policy issues. Additional policy matters require further thought and discussion. The Participants applied for and received notification of award of a Phase 2 grant from the State of New York to perform further work towards implementing a regionalization option.

2.1.6 COST OF NEW YORK CITY WATER

Background

The New York State Water Supply Act of 1905 ("The Act") and subsequent amendments granted the City permission to develop the Catskill and Delaware watershed systems. In return for these development rights, the City was required, upon request, to furnish supplies of fresh water to municipalities and water districts in northern counties in which City water supply facilities and watersheds are located. The Act limits the quantity of water that may be taken or received to the quantity calculated by multiplying the number of inhabitants in the municipality or water district as shown by the last United States, state or official municipal census by the daily per capita consumption in the City.

Section 24-360(e) of the Administrative Code of the City of New York states the following:

“The daily quantity of water which may be taken and received by any municipal corporation or water district under the provisions of this section shall not exceed the quantity calculated by multiplying the number of its inhabitants as shown by the last preceding census of the United States or the last state or official municipal census by the daily per capita consumption in the city of New York.”

Water is supplied to customers north of the City (hereinafter, "upstate customers") on a wholesale basis, i.e., the City delivers water to one or more central locations and the customers (typically municipalities or water districts) are responsible for distributing the water to individual users such as residential buildings and commercial properties. For the period of 1985 through 2009 inclusive, the City provided an average of 43,802 million gallons per year of water to upstate customers, or 119.9 million gallons per day (mgd).

Rates

The Regulated Rate for water supplied within the provisions of Section 24-360(e) of the Administrative Code of the City of New York is based on the computed cost of water supply service divided by the total consumption of both City and upstate users. Costs have been increasing primarily due to capital investments in the water supply system together with

2-7 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT increasing property taxes on watershed properties. Long-term water consumption has been declining. The current rate for water purchases from the City within the monthly entitlement quantity is $1,149.72 per million gallons or about $0.86 per hundred cubic feet. For a single family household using 80,000 gallons of water per year, this equates to about $92 per year. Based on the most recent projections prepared in May 2010, the wholesale rate is projected to increase to $1,312.20 effective July 1, 2011, to $1,449.88 effective July 1, 2012 and to $1,585.50 effective July 1, 2013. These projections are preliminary and subject to change.

Water use in each month by an upstate customer that is above the entitlement quantity is currently billed at the rate of $3,943.85 per million gallons. This rate will increase in the future at the same percentage that water rates increase within the City of New York. Based on the most recent projections prepared in May 2010, the current forecast of future percentage increases in rates is 9.8% per year for the years beginning July 1, 2011, July 1, 2012 and July 1, 2013. These projections are also preliminary and subject to change

2.2 NEW YORK CITY AQUEDUCT ISSUES

2.2.1 OVERVIEW OF NEW YORK CITY AQUEDUCT SYSTEM IN ORANGE COUNTY

Both the Catskill and Delaware Aqueducts traverse the northeast section of Orange County. See Figure 1. The length of the Catskill Aqueduct from Ashokan Reservoir in Ulster County to Kensico Reservoir in Westchester County is 75 miles and is mostly a “cut-and-cover,” open channel flow, non-reinforced concrete, horseshoe-shaped conduit which is 17 feet high and 17.5 feet at its widest point. It has a transmission capacity of 590 mgd. The Catskill Aqueduct also has grade tunnel, pressure tunnel and steel siphon sections. A 14-foot diameter, 3,022-foot long pressure tunnel goes under the Hudson River and is approximately 1,100 feet below sea level. The Catskill Aqueduct comes within approximately 100 feet of Shaft 4 of the Delaware Aqueduct just north of Orange County in the Town of Gardiner in Ulster County.

The Delaware Aqueduct is a circular concrete-lined pressurized bedrock tunnel with a 13.5- to 19.5-foot diameter and a transmission capacity of 800 mgd in the tunnel section between Rondout Reservoir in Ulster County and West Branch Reservoir in Putnam County. The Delaware Aqueduct passes under the Hudson River at a depth of approximately 600 feet below sea level.

There are currently four “community” systems in Orange County that obtain water from the New York City Water Supply system via the Catskill Aqueduct, they include: Stewart International Airport, City of Newburgh, Village of Cornwall-on-Hudson, and the Town of New Windsor. Stewart International Airport and the Town of New Windsor rely on the New York City System for 100% of their water supply. In addition, a future connection to New York City’s Catskill Aqueduct currently under consideration involves the Village of Kiryas Joel. The village has proposed building a 13-mile pipeline to convey up to 2 mgd from an aqueduct connection to be established in the Town of New Windsor. The Town of New Windsor has two Catskill Aqueduct connections which are used as their primary sources of water supply. One tap is located along

2-8 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

Riley Road and the water is treated at the Riley Road Water Filtration Treatment Plant. The second aqueduct tap is located at the Stewart International Airport facility. Water is withdrawn from the aqueduct and pumped up to the Stewart International Airport Water Treatment Plant.

The Village of Cornwall uses their Catskill Aqueduct connection and The Palomino Drive Treatment Plant as a supplemental supply to their sand and gravel well water supplies and their water filtration plant which treats reservoir water from the Black Rock Reservoir.

The City of Newburgh has a Catskill Aqueduct tap at Brown’s Pond. A raw water pump station pumps water from the Catskill Aqueduct to the city’s water filtration plant on Little Britain Road as a backup raw water supply.

The Town of Newburgh has a Delaware Aqueduct tap located at Shaft 5A which provides water to their consolidated water district. The water is disinfected prior to distribution. The town is under a Consent Order to construct a water filtration facility to filter this source and is currently is in the design phase of the project. The town also uses Chadwick Lake water which is filtered and treated on a seasonal basis. The Town of Newburgh’s primary supply at this time is the Delaware Aqueduct.

The primary disadvantage in using Catskill Aqueduct water is the frequent shutdowns which occur in the Catskill Aqueduct due to high turbidity and/or repairs to the Catskill Aqueduct. These shutdowns in more recent years have occurred at least once a year and sometimes more frequently and could last anywhere from three days to several months resulting in the need for the municipalities to have a backup water supply in a sufficient amount to meet the average daily demands of the municipalities.

The Town of Newburgh currently draws off of New York City’s Delaware Aqueduct at Shaft 5A. As noted above, the Town of Newburgh also has the potential to use treated New York City Aqueduct water in the near future due to its recent loss of a filtration waiver for its Delaware Aqueduct source. There are currently a series of options available for interconnecting in the vicinity where the Catskill and Delaware Aqueducts come in close proximity of each other, i.e., in the proximity of Shaft 4 of the Delaware Aqueduct (Engineering Report for the Delaware –Catskill Aqueduct, MHE for Orange County, September 2009). This is discussed in greater detail below.

2.2.2 SHAFT 4 DELAWARE AQUEDUCT INTERCONNECTION TO THE CATSKILL AQUEDUCT: CONSTRUCTION AND SHUTDOWN SCHEDULE

The City of New York Department of Environmental Protection (NYCDEP) is presently in design of a new connection between the Delaware Aqueduct and Catskill Aqueduct at Shaft 4 in the Town of Gardiner just north of Stewart International Airport. The connection would allow the discharge of water from the Delaware Aqueduct into the Catskill Aqueduct. This interconnection will provide several advantages including making Delaware Aqueduct water available to the Towns of New Windsor and Newburgh, City of Newburgh and Village of Cornwall as an alternative source of water in the event of the Catskill or Delaware Aqueduct shutdown. This connection should have the ability to:

2-9 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

• Transfer water from the pressurized Delaware Aqueduct to the open-channel flow Catskill Aqueduct;

• Deliver from 20 mgd to 365 mgd of Delaware Aqueduct water to the Catskill Aqueduct;

• Be used during periods of high turbidity in the Catskill system; and

• Provide system reliability - have the means of conveying Delaware System water if the Catskill Supply is interrupted.

It is anticipated that the design will also include the availability for a direct connection to the Delaware Aqueduct source of supply off one of the 72-inch riser pipes within Shaft 4. A transmission line could be constructed parallel to the Catskill Aqueduct to convey Delaware Aqueduct water to downstream municipalities including the Towns of New Windsor and Newburgh as well as the Village of Cornwall. The transmission main carrying Delaware Aqueduct water would provide a continuous supply of higher quality water. The Delaware Aqueduct also requires less maintenance than the Catskill Aqueduct and, consequently, it is anticipated that there would be less frequent shut-downs than are presently experienced with the Catskill Aqueduct.

The availability of Delaware Aqueduct water in the Catskill Aqueduct solves many of the problems that the municipalities now face with the quality of the Catskill Aqueduct water during the spring of each year and/or shutdowns of the Catskill Aqueduct as a result of the need for repairs or modifications to the aqueduct. During periods of high turbidity or repairs when the Catskill Aqueduct is shut down, the Delaware Aqueduct water can be transferred into the Catskill Aqueduct at Shaft 4. The Delaware Aqueduct water can be made available with the use of stop shutters for the downstream communities, thus solving their situation without having to make available alternative water supplies, such as the use of Brown’s Pond which is owned by the City of Newburgh. An inter-municipal agreement exists between the Town of New Windsor and City of Newburgh for use of the Brown’s Pond.

The availability of the Delaware Aqueduct water in the Catskill Aqueduct could also benefit the Town of Newburgh if the Town of Newburgh were to enter into an agreement with the Town of New Windsor for either a joint water filtration plant to be located at Stewart International Airport or the construction of their own water filtration plant on the Catskill Aqueduct at this location. This would avoid the threat of a long term Delaware Aqueduct shut down and the need for the Town of Newburgh to find alternate water sources to supplement the Chadwick Lake water supply if the Town of Newburgh is to proceed with the construction of the water filtration plant of the Delaware Aqueduct on Shaft 5A, which is presently under design as a result of a Consent Decree issued by the United States Environmental Protection Agency (USEPA).

Likewise, the City of Newburgh and the Village of Cornwall would have available Delaware Aqueduct water in the event of a shutdown of the Catskill Aqueduct if these communities found the need to resort to an alternate water source as a result of their primary source being unavailable as a result of contamination, drought, or other such emergency.

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In addition to the larger Shaft 4 interconnection, there will also be a provision for a community tap off of the Delaware Aqueduct at Shaft 4 which could supply the downstream Orange County municipal systems.

The New York City contract to execute all the interconnection work was awarded in August 2009 and has a planned design completion date of June 2010 with a completed construction milestone date of 2015.

2.2.3 CONSTRUCTION OF A 36-INCH TRANSMISSION PIPELINE PARALLEL TO THE CATSKILL AQUEDUCT

The other option that has also been considered by the communities using the Catskill Aqueduct supply has been the installation of a parallel transmission line from Shaft 4 to the Stewart International Airport location; this would make Delaware Aqueduct water available on a continuous basis. This option would also eliminate the need for installing stop shutters in the Catskill Aqueduct. Furthermore, the Delaware Aqueduct source of supply is much cleaner and requires less treatment than the Catskill Aqueduct water. In the event of a Delaware Aqueduct shut down, Catskill Aqueduct water will still be available via the Catskill Aqueduct tap through the use of existing taps in the Town of New Windsor and the City of Newburgh for filtration and distribution to the communities participating in either a joint regional water filtration plant at or near Stewart International Airport or separate water filtration plants. This option is discussed in greater detail in the next section.

2.2.4 RONDOUT-WEST BRANCH TUNNEL (DELAWARE AQUEDUCT) SHUTDOWN SCHEDULE

To both investigate and ultimately repair the leakage occurring in the Rondout-West Branch Tunnel section of the Delaware Aqueduct, the NYCDEP will need to perform a series of aqueduct shutdowns over the course of the next decade. The current long-term shutdown is scheduled for 2018 and has the potential to last 4 years. Moreover, a number of short-term shutdowns are also planned. These shutdowns of varying length will have a profound effect on the delivery of water to the Town of Newburgh, which currently obtains 90% of its supply from Shaft 5A of the Delaware Aqueduct. In addition, as part of a USEPA consent decree, the town is in the process of designing a new water filtration facility which will draw water from Shaft 5A as well. As such, a long-term outage of the Delaware Aqueduct will present a significant supply problem for the town in that the Delaware Aqueduct supply will not be consistently available in the years ahead. The development of a regional facility will improve the Town of Newburgh’s overall reliability by providing a sustainable source of supply during Delaware and Catskill Aqueduct shutdowns.

2.3 EXISTING MUNICIPAL WATER SUPPLY SYSTEM STATUS, FACILITIES, AND TREATMENT

Given the breadth and scope of their existing systems and their association with the New York City Aqueduct System, the Towns of Newburgh and New Windsor and the City of Newburgh are central to the development of such a regional water resource management strategy. As such,

2-11 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT these three municipalities have been designated Tier 1 communities as part of this study. Tier 2 communities, which are important because each has the potential to become part of a regional system as well, are comprised of the Towns of Montgomery and Cornwall and the Village of Cornwall.

2.3.1 TOWN OF NEWBURGH

The Town of Newburgh has a total population of 23,133, including the unincorporated portion of the town, with a water demand of 2.98 mgd. The town does not have any villages and its population is served by four water districts.

The unincorporated Town of Newburgh serves a population of 313 with a demand of 17,100 gallons per day (gpd). The water supply is obtained from three water districts: the Woodland Drive Home Owners Association, Hill Top Trailer Park, and Candlestick Park. The Candlestick Park water district is the largest, serving a population of 250 people.

The Newburgh Consolidated Water District serves 22,800 people, approximately 7% of Orange County’s population, with a demand of 2.81 mgd. The two primary water sources are New York City’s Delaware Aqueduct and Chadwick Lake, which provide a combined capacity of 5.2 mgd. The tap at Shaft 5A of the Delaware Aqueduct provides an average capacity of 3.2 mgd and a maximum capacity of 8.0 mgd; while the supply capacity from Chadwick Lake is limited by the lake’s safe yield of 2.1 mgd.

Water drawn from the Delaware Aqueduct is disinfected with chlorine (gas) and is not currently filtered. However, the NYSDOH has revoked the facility’s filtration waiver, and as a result, the Town of Newburgh plans to construct a 4.5 mgd membrane filtration plant for the Delaware Aqueduct water supply, which is expected to be out to bid by the first quarter of 2011. Water drawn from Chadwick Lake is treated at the Chadwick Lake Filtration Plant, which is a conventional filtration plant with treatment capacity of 3.2 mgd and a safe yield of 2.0 mgd. Once filtered, the water is disinfected with sodium hypochlorite.

2.3.2 TOWN OF NEW WINDSOR

The Town of New Windsor presently has two separate Catskill Aqueduct taps and two separate water filtration plants. The filtration plant located on Riley Road is a direct filtration treatment facility capable of treating up to 3.0 mgd of raw water from the Catskill Aqueduct. The other water filtration plant in the Town of New Windsor is located at Stewart International Airport and was built in the 1940’s by the U.S. Air Force to serve the Stewart Airbase facility. The diatomaceous earth treatment plant was originally designed for 1 mgd; however, it presently treats, on a consistent basis, only 0.5 mgd. This treatment plant has a separate Catskill Aqueduct tap located at Stewart International Airport.

The Riley Road Water Filtration Plant was originally constructed in the 1970’s and was hydraulically upgraded in the early 1990’s from 2.0 mgd to 3.0 mgd. The hydraulic upgrade provided the capability of treating water up to 6.0 mgd and included the construction of

2-12 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT additional clearwell capacity with the ability to construct an additional sand filter on top of the clearwell. The additional sand filter will expand the treatment capacity to 4.5 mgd. In general, the Riley Road Water Filtration Plant is in excellent operating condition and it is anticipated that regardless of the alternative chosen for additional water treatment (i.e., joint water filtration plant) this facility will continue to operate to provide a portion of the total water supply needs for the Town of New Windsor.

The water filtration plant presently serving the Town of New Windsor at Stewart International Airport was originally constructed by the U.S. Armed Services in the1940’s. After the take over of the airport by the New York State Department of Transportation, the Town of New Windsor entered into an agreement with the Department of Army and New York State Department of Transportation to assume ownership of the water filtration plant and create a Water District 9 to include Stewart International Airport. Prior to the Town of New Windsor assuming ownership, the New York State Department of Transportation constructed several improvements to the water filtration plant which included an upflow, inclined plate clarifier for suspended solids reduction prior to treatment by the existing diatomaceous water filtration system.

As noted previously, this water filtration plant was originally designed for 1 mgd however, it presently operates at 0.5mgd due to its aging condition. In order to meet the existing daily demand of approximately 3 mgd, the water filtration system is operated on a continuous basis to supplement the quantity of water treated at the Riley Road Water Filtration Plant.

In consideration of the aging condition of the Stewart Water Filtration Plant, it is anticipated that if a new joint water filtration plant is constructed or other options are chosen by the Town of New Windsor to further develop and increase water supply, the Stewart Water Filtration Plant will be decommissioned. The Stewart Water Filtration Plant site could potentially be used for a new joint regional facility. Alternatively, a joint regional treatment plant could be constructed on the Route 17K side of Stewart International Airport in the Town of Newburgh.

2.3.3 CITY OF NEWBURGH

The City of Newburgh is supplied with surface water from Washington Lake and Silver Stream Reservoir to serve a population of 28,000 with an average daily demand of almost 3.9 gpd. Additionally the City of Newburgh can draw water from the New York City Catskill Aqueduct in emergency situations. This emergency supply is obtained by opening the blowoff in the Catskill Aqueduct’s Washington Square Siphon. The city owns a water treatment plant located at Lake Washington. The Lake Washington Filtration Plant is a conventional filtration plant with hypochlorite used for disinfection.

2.3.4 VILLAGE OF CORNWALL (WATER DISTRICT)

The Village of Cornwall receives its water supply from New York City’s Catskill Aqueduct, two shallow sand and gravel wells in the Moodna Creek Aquifer, and a small reservoir system in the Black Rock Forest, serving a population of approximately 9,300 with a demand of approximately 1.2 gpd. The village recently completed a microfiltration treatment plant for the reservoir water and has since used the reservoir as a primary source of water. Water that is drawn from the

2-13 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

Catskill Aqueduct is sent to the Palamino filtration plant. The Palamino filtration plant is a conventional treatment plant that is owned by the village. Water leaving this plant, as well as water drawn from the two wells is disinfected with sodium hypochlorite prior to distribution.

The service area for the Village of Cornwall Water District extends beyond the borders of the village and into the town. Because of the crossing of boundaries, the village water district serves 6,230 persons in the Town of Cornwall along with the entire village of 3,066 persons.

2.3.5 TOWN OF MONTGOMERY

The Town of Montgomery comprises three villages and an unincorporated area, with a total population of 14,924 and a total water demand of 1.52 mgd. The villages are supplied with approximately 1.38 mgd of water from wells and the unincorporated portion obtains the remaining demand from the town’s water districts.

The Village of Maybrook serves 3,093 people with a demand of 347,590 gpd supplied by several wells; the Village of Montgomery serves a population of 3,800 customers with a demand of 292,230 gpd supplied by four wells; and the Village of Walden serves a population of 6,164 with a demand of 742,500 gpd supplied by five wells. The water from the wells is disinfected with sodium hypochlorite prior to distribution, and some of the wells supplying the Village of Maybrook are also treated with TCP – 532 for iron and manganese sequestering.

The unincorporated portion of Montgomery is served by nine water districts within the town. The largest of these districts is Montgomery Water District No. 1, which serves 605 people. The remaining eight water districts in the town are Hyndman Heights Water District, Lake Vue Park Water District, Bel-Air Trailer Park, Holiday Mobile Park Inc, MGU Realty, Montgomery Nursing Home, Orange Lake Trailer Park, and Sleepy Hollow Mobile Park. The total population served by these water districts adds up to 1,867 customers with a demand of 136,841 gpd.

2.3.6 TOWN OF CORNWALL

The Town of Cornwall predominately relies on the Village of Cornwall for its water supply and purchases water under contract for various town water districts from the Village of Cornwall. There is one water district within the Town of Cornwall that receives its water supply from the Town of New Windsor. The water district is known as Firthecliff Heights and is located on Route 32 immediately adjoining the Town of New Windsor Town Line in the Vails Gate area of the Town of Cornwall. The Town of Cornwall/Town of New Windsor entered into a water supply agreement in the 1980’s and is presently entertaining an increase in the amount of water to be supplied to Firthecliff Heights for up to 80,000 gpd. An agreement was recently approved by the NYCDEP for the extension of water mains located in the Firthecliff Heights water district. The Town of Cornwall does not own any of the water mains which serve town customers. The water mains are owned by the Village of Cornwall although they may be under the Town of Cornwall roads.

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2.4 SYSTEM NEEDS

As a first step in determining the size and configuration of the new facilities that would be required to meet the future needs of the three key northeast Orange County water supplies, i.e. the Towns of Newburgh and New Windsor and the City of Newburgh, an assessment of each municipality’s current, 10-year, and 20-year demand was made. See Table 2, below. A projected allotment was made for the outside communities as well. These allotments, discussed below in Section 4, were based on information listed in the OCWA Water Master Plan issued in August 2010.

Table 2. Current and Projected System Needs

20-yr Daily Current Daily 10-yr Daily Demand Existing Population Demand (mgd) Demand (mgd) (mgd) Capacity Water District Served Avg. Max. Avg. Max. Avg. Max. (mgd) Town of Newburgh 22,800 2.81* 4.5* 4.5 7.0 5.0 8.0 5.96 City of Newburgh 28,000 3.87 4.5 5.0* 5.5* 6.0* 6.5* 9.50 Town of New Windsor 20,276 2.83 4.0* 4.0 5.0* 6.0 7.0* 3.50 Total 71,076 9.51 13.0 13.5 17.5 17.0 21.5 18.96 * Estimated based on population projections and interviews with the municipalities. *Town of Newburgh current demand does not include the Town of Marlborough; current demand would rise to 3.4 mgd if included.

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3. ALTERNATIVES TO MEET WATER SUPPLY NEEDS

For Several years, the Town of Newburgh and the Town of New Windsor have been discussing participation in a joint water filtration plant near the Catskill Aqueduct for the purpose of supplementing their existing water filtration plants for both their present and future water supply demands. Meetings have been held with the NYCDEP as well as the Orange County Executive’s Office and the OCWA to discuss the mutual interest of the Town of New Windsor, Town of Newburgh, Port Authority of New York and New Jersey (Port Authority), and Orange County as a whole.

Both the towns are at or near their filtration plant capacities. Although the Town of Newburgh takes water from the Delaware Aqueduct presently without the need for treatment, as noted earlier, the town is under a consent order with the USEPA to provide treatment of Delaware Aqueduct water in addition to their Chadwick Lake Water Filtration Plant.

The Town of New Windsor has two water filtration plants, one located at Riley Road and the other at Stewart International Airport, and both have separate Catskill Aqueduct taps. The Town of New Windsor’s water supply demands at times exceed 3.0 mgd with the combined available capacity of the two water filtration plants equaling approximately 3.5 mgd. Therefore, the Town of New Windsor is at or near their filtration plant capacity and is in need of either an expanded water filtration plant at Riley Road or a new water filtration plant.

The Town of Newburgh is designing a water filtration plant using Delaware Aqueduct water at Shaft 5A near the Town of Newburgh/Town of Marlborough municipal border. The Town of Newburgh understands the vulnerability of using the Delaware Aqueduct as a primary water supply source in light of the fact that the City of New York is planning an extended shutdown for repairs of the Delaware Aqueduct which could last up to four years. For this reason, the Town of Newburgh has been discussing alternative water supplies with the City of Newburgh and the Town of New Windsor, including discussions with the Town of New Windsor for a joint water filtration plant at or near Stewart International Airport on the Catskill Aqueduct.

To address the projected system needs as well as address the impending need to update water supply infrastructure in the northeast region of Orange County, four distinct water treatment alternatives were evaluated. With the exception of alternatives 1C and 4, it was assumed that the Town of Newburgh had the potential to receive relief from the USEPA concerning the Town’s consent decree requirement to construct a water filtration plant at Shaft 5A of the Delaware Aqueduct. In addition, all alternatives also assumed the continued operation of the Riley Road and Chadwick Lake water treatment facilities. These alternatives, which are described below and in Table 3, are also depicted on Figure 2:

Joint Capacity Municipalities (mgd)

Water Description Treatment Facilities Location Additional Infrastructure Source New Total Alternative Town of Existing New WindsorNew City Newburgh of Town Newburgh of - 8 mgd Direct Filtration WTP - T own of Newburgh interconnect: 2,100 LF of 16” and 20” Town of Newburgh WM A Joint Town of New Windsor-Town X X (Stewart International - Tap to Catskill Aqueduct of Newburgh Plant Supplied with New Regional Plant and Airport) - Town of New Windsor interconnect: Upsize 2,400 LF of 8” Direct Filtration 3 8 11 New York City Aqueduct Water Existing Riley Road Plant WM under runway to 12” WM and Existing Riley Road Plant Catskill/ -Acquire Site 1 Delaware - Town of Newburgh interconnect: 3,700 LF of 16” WM B X X Aqueduct Town of New Windsor - 5 mgd Pump Station - Replace Existing Tap to Catskill Aqueduct Joint Town of New Windsor-Town Direct Filtration New Regional Plant, - 5 mgd Membrane Filtration Plant at Shaft 5A of Newburgh Plant Supplied with and Existing Riley Road Plant, - Town of Newburgh interconnect: 3,700 LF of 16” WM C New York City Aqueduct Water, X X 3 10 13 Town of New Windsor Membrane and new Membrane - 5 mgd Pump Station Existing Riley Road Plant and Filtration Filtration Plant at Shaft 5A - Replace Existing Tap to Catskill Aqueduct Membrane Plant at Shaft 5A Washington Lake Plant - Expand Washington Lake Plant from 9.5 mgd to 14 mgd Existing City of Newburgh Plant to Washington Lake 9.5 4.5 City of Newburgh and Conventional (Expansion) - Upsize City of Newburgh Tap to Catskill Aqueduct 2 Serve as a Regional Facility and X X X and Catskill and + 17 Town of New Windsor Filtration (Existing) and - Town of Newburgh interconnect: 7,500 LF of 16” WM Existing Riley Road Plant Aqueduct 3 0 Existing Locations Existing Riley Road Plant - Town of New Windsor interconnect: 5,600 LF of 12” WM - 8 MGD Desalination Plant with RO - Intake Structure with Pumps - 8 mgd Effluent Pump Station - 3,400 LF of 20” WM A X X Town of Newburgh Joint Town of New Windsor-Town - Town of Newburgh interconnect: 10,000 LF of 16” WM Desalination with of Newburgh Plant Supplied with - Town of New Windsor interconnect: 19,500 LF of 12” 3 Hudson River Reverse Osmosis New Regional Plant 3 8 11 Hudson River Water and Riley WM (RO) Road Plant - Acquire Site - 8 mgd Desalination Plant with RO - Intake Structure with Pumps B X X Town of New Windsor - 12,600 LF of 20” WM - Town of Newburgh interconnect: 10,400 LF of 16” WM Base Case: Separate Plants Delaware Membrane New Membrane Filtration Plant Aqueduct Filtration New Plant 0 6 6 Town of Newburgh - 6 mgd Membrane Filtration Plant Conventional 2. Retain Chadwick Plant Chadwick Lake Existing Plant 2.1 0 Town of Newburgh - Retain Chadwick Lake Plant 4 X X Filtration 1 Expand Riley Road Plant 3 3 6 Town of New Windsor - Expand Riley Road Plant from 3 mgd to 6 mgd Catskill Aqueduct Direct Filtration Existing Plant Decommission Stewart Plant 0.5 -0.5 0 Town of New Windsor - Decommission Stewart Filtration Plant Notes: LF = linear feet WM = water main

3-2 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study F Assumed Operational: Alt 1C and 4: Membrane Filtration Plant at Shaft 5A Tap Delaware Aqueduct Shaft 4 Tap Town of Newburgh and Tunnel 6 MGD All Alternatives D e ) A l a ORANGE q u w e a r d u e C OUNTY c t

)

T O W N OF

A NEWBURGH

e s Alt 1A: Joint Filtration Plant - Aqueduct Tap d k Construct

u i Town of Newburgh/New Windsor

c l

Riley Road Filtration Plant - Aqueduct Tap Alt 1A, 1B, 1C, 2 and 3: Retain: Town of Newburgh/New Windsor 3 MGD Alt 4: Retain and Expand: New Windsor only, 6 MGD

Water Supply Sources T O W N OF City or Town (Capacity in MGD) CORNWALL- BLOOMING Existing CORNWALL ON-HUDSON Village New GROVE Plant Plant

V. WASHINGTONVILLENew Windsor Cons. W.D. ) ) 1.0 to 5.0

City of Newburgh ) ) > 5.0

Town of Newburgh Cons. W.D. / Decommissioned Plant HIGHLANDS

Aqueduct

Figure 2. Overview of Regional Water Supply Alternatives (Major Facilities) FINAL DRAFT

and construct the filtration plant at Shaft 5A as mandated by the Town’s existing consent decree with the USEPA. All Stewart airport locations would use water supplied from a new tap which would be installed on the Catskill Aqueduct. The new or reconfigured tap would allow for both increased flow capacity at the withdrawal point from the invert of the Catskill aqueduct, and reduced water elevations\flow rates in the aqueduct during partial aqueduct shutdowns. It was assumed that in the future, the Catskill Aqueduct could receive either Catskill or Delaware Aqueduct water given that the aqueduct interconnection at Shaft 4 of Delaware Aqueduct would be completed by 2015.

(4) Alternative 4: Town of New Windsor and the Town of Newburgh each Proceed to Develop Separate Plants (base case) to meet their future water supply needs. Table 3, located at the end of this section, summarizes each of the alternatives.

3.1 ALTERNATIVE 1: JOINT TOWN OF NEW WINDSOR/TOWN OF NEWBURGH PLANT SUPPLIED WITH A NEW YORK CITY CATSKILL AQUEDUCT WATER TAP, AND LOCATED AT STEWART INTERNATIONAL AIRPORT

This alternative proposes to design and construct a joint water filtration plant for the Towns of New Windsor and Newburgh using a Catskill Aqueduct connection. The joint facility could be either be located at the Stewart International Airport property at the end of Governor’s Drive (Town of Newburgh), or the Stewart International Airport property at or near the existing Town of New Windsor Stewart International Airport filtration plant which currently uses a Catskill Aqueduct tap (in the Town of New Windsor). This alternative assumes that:

• The Riley Road Water Filtration Plant in the Town of New Windsor will continue to operate at 3 mgd;

• Water from the joint plant will be obtained from a newly designed and constructed bottom tap off the Catskill Aqueduct;

• The Shaft 4 interconnection between the Catskill and Delaware Aqueducts located in the Town of Gardiner will be completed, thus allowing for both water from Rondout and Ashokan Reservoirs to supply the aqueduct;

• The Stewart Water Filtration Plant will be decommissioned; and

• With the exception of Alternatives 1C and 2, the plant size will be 8 mgd and will use direct filtration treatment technology. 3-4 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

3.1.1 ALTERNATIVE 1A: JOINT TOWN OF NEWBURGH/NEW WINDSOR WATER FILTRATION PLANT LOCATED IN THE TOWN OF NEWBURGH

This alternative proposes that a regional plant primarily supplying water to the Towns of Newburgh and New Windsor be located within Stewart International Airport in the Town of Newburgh on Governor’s Drive. It assumes the Town of Newburgh will not be required to construct a membrane filtration facility at Shaft 5A at the Delaware Aqueduct. This alternative would include a new connection to the Catskill Aqueduct, and gravity transmission and distribution which would include installation of 1600 feet of 16-inch transmission main which would connect with a 16-inch transmission main in New Windsor. Alternative 1A is depicted in Figure 3.

3.1.2 ALTERNATIVE 1B: JOINT TOWN OF NEWBURGH/TOWN OF NEW WINDSOR WATER FILTRATION PLANT LOCATED IN TOWN OF NEW WINDSOR

This option proposes that the regional plant be located at the Stewart International Airport water filtration plant location near the Stewart International Airport in the Town of New Windsor. It assumes the Town of Newburgh will not be required to construct a membrane filtration facility at Shaft 5A at the Delaware Aqueduct. In addition to the installation of a new Catskill Aqueduct tap this option would require:

• Installing 5,500 feet of 16-inch transmission main from the existing 20-inch water main to the existing 16-inch water main at Route17K; • Pumping the water from the plant to the distribution network (6 mgd); and • Permit from the Port Authority (already started by the Town of New Windsor).

The advantages of this option are that no land needs to be acquired for the plant location and that the Town of New Windsor already has a 20-inch water main in place east of the Stewart International Airport water filtration plant that could be used for part of the distribution system. Alternative 1B is depicted in Figure 4.

3.1.3 ALTERNATIVE 1C: JOINT TOWN OF NEWBURGH/TOWN OF NEW WINDSOR 5 MGD WATER FILTRATION PLANT LOCATED IN TOWN OF NEW WINDSOR WITH A 6.0 MGD MEMBRANE WATER FILTRATION PLANT LOCATED AT SHAFT 5A OF THE DELAWARE AQUEDUCT

Under the current consent order, the USEPA is requiring the Town of Newburgh to build a filtration plant at Shaft 5A as such, this alternative assumes the Town of Newburgh will continue with the design and construction of a 6.0 mgd Delaware Aqueduct water treatment plant at Shaft 5A. Accordingly, the joint Town of Newburgh, Town of New Windsor water filtration plant will have a design capacity of 5 mgd. The design capacity of 5 mgd will include 3 mgd of capacity for the Town of New Windsor to supplement their existing capacity of 3.0 mgd for a total of 6 mgd assuming the existing Stewart International Airport water filtration plant is decommissioned. The joint facility will have a reserve capacity for the Town of Newburgh of

3-5 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study F Assumed Operational: Delaware Aqueduct Shaft 4 Tap and Tunnel D e A l a q u w e a r d u e c t ORANGE

Retain C OUNTY Chadwick Lake Filtration Plant Chadwick Town of Newburgh 2.0 MGD Lake ) MONTGOMERY Orange Lake

r e v Construct i Joint Direct Filtration Plant and New Aqueduct Tap R in Town of Newburgh n

Serving Towns of Newburgh/New Windsor o 8 MGD s d

Construct Town of Newburgh - New Windsor H Interconnection T O W N OF NEWBURGH C I T Y OF

) ! Upsize Water Main under Runway from NEWBURGH ! 8" to 12" Breadth STEWART INTERNATIONAL AIRPORT

/ Lake Decommission C A a Washington Stewart Airport Plant - q t u s Aqueduct Tap e k d i l New Windsor/Stewart u l c -0.5 MGD t T O W N O F NEW WINDSOR

Silver Stream Reservoir )

Retain: Riley Road Filtration Plant - Aqueduct Tap Towns of Newburgh/New Windsor 3 MGD

Water Supply Sources City or Town (Capacity in MGD) CORNWALL- BLOOMING Existing ON-HUDSON Village New GROVE Plant Plant Municipal Water Supply District T O W N OF V. WASHINGTONVILLE ) ) 1.0 to 5.0 CORNWALL New Windsor Cons. W.D. ) ) > 5.0 Town of Newburgh Cons. W.D. HIGHLANDS Aqueduct New or Expanded Connection/Main 0 1 2 Miles I / Decommissioned Plant

Figure 3. Regional Water Supply Alternative 1A F Assumed Operational: Delaware Aqueduct Shaft 4 Tap and Tunnel D e A l a q u w e a r d u e c t ORANGE

Retain C OUNTY Chadwick Lake Filtration Plant Chadwick Town of Newburgh 2.0 MGD Lake ) MONTGOMERY Orange Lake

r e v T O W N OF i R NEWBURGH n

C I T Y OF

NEWBURGH !

Decommission Construct New TNB-TNW Interconnection Stewart Airport Plant - STEWART Aqueduct Tap INTERNATIONAL New Windsor/Stewart AIRPORT -0.5 MGD / Lake ) Washington C Construct a t A q s k Joint Direct Filtration Plant, u e i l l d u New Aqueduct Tap c t in Town of New Windsor Serving Towns of Newburgh/New Windsor 8 MGD Pump Station - Pump to Town of Newburgh Silver Stream 5 MGD Reservoir ) T O W N O F NEW WINDSOR

Retain: Riley Road Filtration Plant - Aqueduct Tap Towns of Newburgh/New Windsor 3 MGD

Water Supply Sources City or Town (Capacity in MGD) CORNWALL- Existing BLOOMINGVillage New ON-HUDSON GROVE Plant Plant Municipal Water Supply District ) ) T O W N OF V. WASHINGTONVILLE 1.0 to 5.0 CORNWALL New Windsor Cons. W.D. ) ) > 5.0 Town of Newburgh Cons. W.D. HIGHLANDS Aqueduct New or Expanded Connection/Main 0 1 2 Miles / Decommissioned Plant I

Figure 4. Regional Water Supply Alternative 1B FINAL DRAFT

2 mgd which would then provide sufficient capacity for the Town of Newburgh to supply their residents with water during the long-term shutdown of the Delaware Aqueduct in conjunction with the Chadwick Lake Water Filtration Plant, which has a design capacity of 3.2 mgd therefore providing the Town of Newburgh with a total capacity of 5.2 mgd; this capacity would allow for the Town of Newburgh to meet its 20 year demand. Alternative 1C is depicted in Figure 5.

3.2 TOWN OF NEWBURGH/TOWN OF NEW WINDSOR JOINT WATER FILTRATION PLANT: CONNECTION OPTIONS TO THE CATSKILL OR DELAWARE AQUEDUCTS

Use of the Catskill Aqueduct for water supply to the regional plant would require conventional filtration for water treatment due to increased turbidity during the spring months. A new tap and transmission main to the Catskill Aqueduct would be required to convey water to the plant. As an advantage, occasional use of the Delaware Aqueduct would be possible once the tap at Shaft 4 is constructed, which could be essential during low water quality periods in the Catskill Aqueduct. This would preclude the need for conventional filtration since during periods of poor Catskill Aqueduct water quality; the aqueduct source could be switched to the Delaware System, thus allowing the implementation of the less expensive direct filtration option. A disadvantage of this option is that the use of stop shutters would be required during periods of low flow within the Catskill Aqueduct,. As discussed earlier, the exclusive use of the Delaware Aqueduct for water supply to the regional plant would allow for the use of direct or membrane filtration for water treatment due to the higher quality Delaware Aqueduct water. A new tap to the Delaware Aqueduct at Shaft 4, and a 10 mile, 36-inchtransmission pipeline from the aqueduct to the plant location would be required. Advantages of this option include continuous supply from a single source, which will be preferred for treatment, greater reliability in terms of water quality; an operational advantage is that stop shutters would not be required. Both of these aqueduct connection options to the Town of Newburgh/Town of New Windsor joint regional plant are evaluated in terms of cost in Section 5. The transmission pipeline is depicted in Figure 6.

3.3 ALTERNATIVE 2: EXPANSION OF CITY OF NEWBURGH WATER TREATMENT PLANT TO SERVE AS A REGIONAL FACILITY

The City of Newburgh presently has as its water supply the Washington Lake reservoir and, as an alternate source, a Catskill Aqueduct tap and transmission main to their water filtration plant located on Little Britain Road near the Town of New Windsor border. The water filtration plant has a design capacity of 10 mgd with the City of Newburgh average daily water demand estimated at 4 mgd leaving an approximate water supply surplus of 6 mgd. The City of Newburgh water supply demands between 2010 and 2018 are not anticipated to increase significantly and therefore, the reserve capacity of 6 mgd could be a source of water supply through an inter-municipal agreement for the Town of Newburgh and Town of New Windsor. The Town of Newburgh’s 20-year demand, as discussed previously, totals approximately 5 mgd on an average daily basis and 8 mgd on a maximum daily basis with the Town of New Windsor’s 20-year demand totaling 6 mgd on an average daily basis and a 9.0 mgd on maximum daily basis.

3-8 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study Construct F Membrane Filtration Plant at Shaft 5A Assumed Operational: Delaware Aqueduct Shaft 4 Tap Town of Newburgh and Tunnel 6 MGD

D e ) A l a q u w e a r d u e c t ORANGE C OUNTY Chadwick Lake ) Retain During Shaft 5A Shutdown: MONTGOMERY Orange Chadwick Lake Filtration Plant Lake Towns of Newburgh 3.2 MGD

r e v T O W N OF i R NEWBURGH n

Construct: Town of Newburgh - New Windsor Interconnection

C I T Y OF STEWART ! NEWBURGH INTERNATIONAL AIRPORT Decommission Stewart Airport Plant - Aqueduct Tap Construct New Windsor/Stewart Joint Direct Filtration Plant and New Aqueduct Tap -0.5 MGD / Towns of Newburgh/NewLake Windsor ) 5 MGDWashington Pump Station for Town of Newburgh C a A t s 2 MGD q u k i l e d l u c t T O W N O F NEW WINDSOR

Silver Stream Reservoir )

Retain: Riley Road Filtration Plant - Aqueduct Tap Towns of Newburgh/New Windsor 3 MGD

Water Supply Sources City or Town CORNWALL- BLOOMING (Capacity in MGD) ON-HUDSON GROVEVillage Existing New Municipal Water Supply District Plant Plant T O W N OF V. WASHINGTONVILLE ) CORNWALL New Windsor Cons. W.D. ) 1.0 to 5.0 Town of Newburgh Cons. W.D. ) ) > 5.0 HIGHLANDS Aqueduct New or Expanded Connection/Main 0 1 2 / Decommissioned Plant Miles I

Figure 5. Regional Water Supply Alternative 1C Aqueduct Proposed Shaft 4 Tap Tunnel Proposed Delaware Aqueduct Shaft 4 Tap 9Î! 9Î! Source Facility (! Water Use Facility ULSTER COUNTY City or Town Village

D e Municipal Water Supply District A l a q u w e a r New Windsor Cons. W.D. d u e c t Proposed Water Tunnel City of Newburgh

Town of Newburgh Cons. W.D.

Chadwick Lake V. WALDEN

Orange T O W N OF Lake MONTGOMERY

r e v i

t R

c l n

u T O W N OF o

d NEWBURGH s s

t d

a u

C H ORANGE A

COUNTY C I T Y OF Proposed (! NEWBURGH Joint Filtration STEWART Plant - INTERNATIONAL Aqueduct Tap AIRPORT

Lake Proposed (! Washington Joint Direct V. MAYBROOK Filtration Plant - Aqueduct Tap

T O W N O F NEW WINDSOR Silver Stream Reservoir (! Riley Road Filtration Plant - Aqueduct Tap 0 1 2 Miles T O W N OF CORNWALL- I ON-HUDSON CORNWALL

Figure 6. Proposed Shaft 4 Tap FINAL DRAFT

Considering the fact that the Town of Newburgh may construct a water filtration plant at Shaft 5A on the Delaware Aqueduct and maintain their Chadwick Lake Filtration Plant, the additional capacity required by the Town of Newburgh would vary from 2 mgd to 5 mgd.

The Town of New Windsor anticipates upgrading their Riley Road Filtration Plant to maintain their 3 mgd demand capacity and would therefore need an additional 3 mgd of capacity from the City of Newburgh.

On the basis of the above, the Town of Newburgh’s water supply needs will vary from 2 mgd to 5 mgd and the Town of New Windsor’s water supply needs have been estimated at 3mgd for a total water supply necessary from the City of Newburgh of between 5 mgd and 8 mgd.

Under the scenario that the Town of Newburgh build a water filtration plant at Shaft 5A with a design capacity of 4.8 mgd, the City of Newburgh will be presently able to supply the water needs to the Town of New Windsor and the Town of Newburgh for the foreseeable future. If, on the other hand, the Town of Newburgh does not build a plant at Shaft 5A, the City of Newburgh would need to expand their treatment plant by 2.0 mgd to satisfy the total Town of Newburgh/Town of New Windsor need of 8 mgd. Alternative 2 is depicted in Figure 7.

The following infrastructure will be required:

• New tap to the Catskill Aqueduct and approximately 10,000 linear feet of 20-inch transmission main to the Washington Lake Filtration Plant; and

• Modifications to the distribution system.

3.4 ALTERNATIVES 3A AND 3B: JOINT TOWN OF NEW WINDSOR – TOWN OF NEWBURGH PLANT SUPPLIED WITH HUDSON RIVER WATER PUMPED TO THE NEW PLANT

This alternative would involve siting a 8 mgd water treatment plant on the Hudson River either in the Town of New Windsor: Alternative 3A (near River Road behind Hewitt Lane or River Road south of Verplanck Road) or in the Town of Newburgh: Alternative 3B (near River Road , north of Susan Drive). This alternative would ensure less dependence on the New York City Aqueducts for water supply with the option to use them as a back-up, which will be an advantage in terms of system reliability. Alternatives #3A and #3B are depicted in Figure 8. The disadvantages of this alternative include: the potential need for desalination, the use of poorer source water quality, the difficulty in the permitting of the intake, land acquisition for the plant site, and the need for the following additional infrastructure:

• New pump station for pumping of treated water to the distribution systems; and

• Extensive transmission pipelines to connect to the distribution systems.

3-11 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study F Assumed Operational: Delaware Aqueduct Shaft 4 Tap D e A l a q u w e a ORANGE d r e u c C OUNTY t

Retain Chadwick Lake Filtration Plant Chadwick Town of Newburgh 2.0 MGD Lake ) MONTGOMERY Orange Lake

r e v i

n T O W N OF o s NEWBURGH d u

C I T Y OF NEWBURGH STEWART INTERNATIONAL Construct 16" Interconnection

AIRPORT

Decommission City of Newburgh/Town of Newburgh Stewart Airport Plant - ! Aqueduct Tap New Windsor/Stewart Lake -0.5 MGD / ) C Washington

A a q t ! u s e k Expand d i l u l Lake Washington Filtration Plant c t Added Capacity: 4.5 MGD New Total Capacity: 14 MGD (Regional) T O W N O F NEW WINDSOR

Silver Stream Construct 12" Interconnection Reservoir ) City of Newburgh/Town of New Windsor

Retain: Riley Road Filtration Plant - Aqueduct Tap Regional 3 MGD

Water Supply Sources City or Town (Capacity inT MGD) O W N OF CORNWALL- Existing CORNWALL BLOOMINGVillage New ON-HUDSON Plant GROVE Plant New Windsor Cons. W.D. ) ) 1.0 to 5.0 V. WASHINGTONVILLE City of Newburgh ) ) > 5.0

Town of Newburgh Cons. W.D. / Decommissioned Plant HIGHLANDS 0 1 2 Miles Aqueduct New or Expanded Connection/Main I

Figure 7. Regional Water Supply Alternative 2 F Assumed Operational: Delaware Aqueduct Shaft 4 Tap

D e A l a q u w e a ORANGE d r e u c C OUNTY t

Retain Chadwick Lake Filtration Plant Chadwick Town of Newburgh 2.0 MGD Lake ) Orange Lake

r e v T O W N OF ) i R NEWBURGH

o s

Construct (Alternative Site) H Joint River Water Intake, Desalination Plant and Pump Station Town of Newburgh/New Windsor, 8 MGD C I T Y OF NEWBURGH STEWART INTERNATIONAL AIRPORT Decommission Stewart Airport Plant - Aqueduct Tap New Windsor/Stewart -0.5 MGD / Lake C A a Washington q t u s e k d i l u l c t T O W N O F NEW WINDSOR

) Construct (Alternative Site) Silver Stream Joint River Water Intake, Reservoir Desalination Plant ) and Pump Station Town of Newburgh/New Windsor, 8 MGD Retain: Riley Road Filtration Plant - Aqueduct Tap Town of Newburgh/New Windsor 3 MGD

Water Supply SourcesT O (Capacity W N OF in MGD) CORNWALL CORNWALL- BLOOMINGCity or Town Existing New ON-HUDSON GROVE Plant Plant Village V. WASHINGTONVILLE ) ) 1.0 to 5.0 MGD Municipal Water Supply District ) > 5.0 MGD New Windsor Cons. W.D. ) / HIGHLANDS Town of Newburgh Cons. W.D. Decommissioned Plant 0 1 2 Aqueduct New or Expanded Main Miles I

Figure 8. Regional Water Supply Alternative 3 FINAL DRAFT

3.5 ALTERNATIVE 4: BASE CASE – SEPARATE PLANTS

This alternative maintains the local approach currently operating, in which each municipality owns and operates its own plants to supply their local demand. To meet the future demands, this alternative includes the expansion of the existing Riley Road plant in the Town of New Windsor to supply the local water needs. It would also include the construction of a new membrane filtration plant in the Town of Newburgh to meet the water demand of the town as well as maintaining and operating the Chadwick Lake plant. The proposed improvements under this alternative include:

• Expanding the Riley Road plant to add 3 mgd for a total capacity of 6 mgd;

• Decommissioning the Stewart International Airport water filtration plant; and

• Constructing a 5 mgd membrane filtration plant at Shaft 5A.

An advantage of this alternative is the use of existing infrastructure, including aqueduct taps, storage, transmission mains, and a distribution system. A disadvantage of this alternative is the operation and maintenance of multiple facilities and the associated aging infrastructure. Alternative 4 is depicted in Figure 9.

3-14 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study F Assumed Operational: Delaware Aqueduct Shaft 4 Tap Construct Membrane Filtration Plant at Shaft 5A D e Town of Newburgh A l a q u w ) e a ORANGE 6 MGD d r e u c C OUNTY t

Retain Chadwick Lake Filtration Plant Chadwick Town of Newburgh 2.0 MGD Lake ) MONTGOMERY Orange Lake r e v i R

T O W N OF H NEWBURGH

C I T Y OF NEWBURGH STEWART INTERNATIONAL AIRPORT Decommission Stewart Airport Plant - Aqueduct Tap New Windsor/Stewart -0.5 MGD / Lake C A a Washington q t u s e k d i l T O W N O F u l c t NEW WINDSOR

Construct New Town of Windsor Aqueduct Tap Expand Riley Road Filtration Plant - Aqueduct Tap

Silver Stream ! Town of New Windsor Reservoir Added Capacity: 3 MGD ) Total Capacity: 6 MGD

T O W N OF CORNWALL

CORNWALL- BLOOMINGCity or Town Water Supply Sources (Capacity in MGD) ON-HUDSON GROVE Existing New Village V. WASHINGTONVILLE Plant Plant Municipal Water Supply District ) ) 1.0 to 5.0 MGD New Windsor Cons. W.D. ) ) > 5.0 MGD HIGHLANDS Town of Newburgh Cons. W.D. 0 1 2 Aqueduct / Decommissioned Plant Miles I

Figure 9. Base Case Alternative 4 FINAL DRAFT

4. NEIGHBORING COMMUNITIES

A joint regional water filtration plant constructed at or near Stewart International Airport tapping the Catskill Aqueduct could be available to multiple municipalities. In addition to the Towns of New Windsor and Newburgh and the City of Newburgh, the Towns of Montgomery, Cornwall, and the Village of Cornwall all have municipal borders and water distribution systems within reasonably close proximity to the proposed site(s) of the joint-regional facility. Table 4, below, lists the demand and associated infrastructure needed for connection to the regional system for the Village and Town of Cornwall and the Town of Montgomery. The total demand projected for all three municipalities is 1.9 mgd. Each of the relevant outside communities may be interested in participating in a joint-regional facility for the following reasons:

Village of Cornwall

The Village of Cornwall has a Catskill Aqueduct tap and feeder main on Riley Road immediately next to the Town of New Windsor’s Riley Road Filtration Plant and the Village of Cornwall’s water filtration plant located on Palomino Drive is very close to the Town of New Windsor’s water distribution system. The Village, although currently self sufficient, may want to interconnect with the regional facility in order to improve overall system reliability.

Town of Cornwall

The Town of Cornwall presently receives most of its water from the Village of Cornwall, with the exception of one water district near the Vails Gate/Town of New Windsor called the Firthecliffe Heights Water District, which is under contract with the Town of New Windsor for water supply. The Town of Cornwall, other than the Firthecliffe Heights Water District, does not own any water distribution mains and would quite likely consider water from a joint water filtration plant only for any new water districts within the town or districts that have been formed in close proximity to the Town of New Windsor’s water distribution system.

Town of Montgomery

The Town of Montgomery has expressed some interest in using the joint water filtration plant however, the town is presently entertaining a consolidation of several existing water districts (both public and private) into one water district or a consolidated water district with an improvement to their own water supply system which is fed by wells. The cost to extend a feeder main along Route 17K from near the interchange with Interstate 84 and Route 17K may not warrant a connection to a joint facility near Stewart International Airport.

If serious consideration is given to the parallel water line which would bring Delaware Aqueduct water directly to a joint water filtration plant along the route of the Catskill Aqueduct, consideration should be given to sizing this water main to serve other communities, including those discussed above as well as other communities in the southeastern region of Orange County.

4-1 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

Table 4. Neighboring Communities Demand and Infrastructure

Demand Municipality Additional Infrastructure (mgd) - 8” Wet Tap to Town of New Windsor Distribution System - 50’ to 100’ of 8” WM from Wet Tap to Village of Cornwall Water Village of Cornwall 1.3 Distribution System - Connections will Require Approval from the Department of Health - Wet Tap to Town of New Windsor Distribution System at Dean Hill and Mount Airy Town of Cornwall 0.1 - WM from Wet Tap to School - Connections will Require Approval from the Department of Health Town of Montgomery 0.5 - 16” WM extension along Route 17K - 0.5 MGD Booster Pump Station

4-2 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

5. COST OF EACH ALTERNATIVE

A conceptual cost estimate was developed for each of the four alternatives identified in this study. The estimated costs are summarized in Table 5 below, and support information is presented in Appendix A.

The following steps and assumptions were used to develop the conceptual cost estimate:

• The infrastructure required by each alternative was determined based on the water supply needs of each municipality, their existing infrastructure, and the potential location of the water treatment facilities. The size of the pipelines to be used for conveyance was determined based on maintaining a flow velocity between 2.5 ft/s and 8.0 ft/s. • The cost for the taps to the Catskill Aqueduct was based on a standard NYCDEP Outside Connection Detail which includes steel pipe at the tap location, a dry well, and valves. This detail was obtained from the NYCDEP CAT 211 design report developed by the engineering consulting firm Hazen and Sawyer. • The existing Chadwick Lake Filtration Plant in the Town of Newburgh (not retained due to it’s intermittent use as a result of seasonal water quality problems) and the Stewart International Airport Filtration Plant in the Town of New Windsor were assumed to be decommissioned for all the alternatives, except for Alternative 1C in which the Chadwick Lake Plant remains in service until a new Membrane Filtration Plant at Shaft 5A is in operation. The cost of decommissioning these plants was not included in the capital cost comparison as it will be equal for all alternatives. However, Appendix B provides cost data for the condition when the Chadwick Lake Plant use is retained at a continuous safe yield of 2.0 mgd. • It was assumed, for all the alternatives, that the Riley Road Filtration Plant located in the Town of New Windsor will remain in service and as noted above, the existing 0.5 mgd Stewart Filtration Plant located in the Town of New Windsor will be decommissioned. • The total direct construction costs were estimated as the material and labor cost of the infrastructure required to implement each alternative. Labor and material costs for the conveyance infrastructure were obtained from the RS Means cost books for the third quarter of 2010. Cost estimates from previous projects were used, escalated, and prorated to estimate the capital cost of the water treatment plants. The following additional costs were added to the direct construction costs in order to estimate the total construction cost: a. A contingency of 35% was applied to the direct construction cost due to the conceptual stage of the study. b. The cost to meet the requirements of the construction contract’s general conditions including mobilization, bonds, and testing, was assumed to be 10% of the direct construction cost. c. An escalation to mid-point construction corresponding to 5% of the total direct construction cost was assumed.

5-1 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

Table 5. Summary of Costs

Cost Upfront Added per Annual Alternative Capital Cost Capacity* Gallon O&M Costs 1. Joint Town of Newburgh -Town of New Windsor Filtration Plant Supplied with New York City Aqueduct Water and Existing Riley Road Plant 1A. Located in Town of Newburgh $47,124,000 8 mgd $5.89 $2,880,000 1B. Located in Town of New Windsor $53,349,000 8 mgd $6.67 $3,348,000 1C. Located in Town of New Windsor and with Membrane Filtration Plant $61,277,000 5 mgd $12.26 $3,895,000 at Shaft 5A (which will have intermittent use during aqueduct shutdowns) Joint Water Filtration Plant Connection to the Catskill or Delaware Aqueducts $29,553,000 N/A N/A $219,000 2. Expansion of City of Newburgh Water Treatment Plant to serve as a $26,185,000 8 mgd $3.27 $3,097,000 Regional Facility and Existing Riley Road Plant 3. Joint Town of Newburgh – Town of New Windsor Desalination Plant Supplied with Hudson River Water Pumped to the New Plant, and Existing Riley Road Plant 3A. Located in Town of Newburgh $113,568,000 8 mgd $14.20 $8,602,000 3B. Located in Town of New Windsor $115,243,000 8 mgd $14.41 $8,617,000 4. Base Case – Separate Plants Town of Newburgh $27,641,250 6 mgd $4.61 $1,641,000 Town of New Windsor $16,280,000 3 mgd $5.43 $1,436,765 Notes: Costs in 2010 Dollars. The cost per gallon was estimated based on the estimated capital cost divided by the added capacity. Alternative 2 O&M costs were based on a fully operating 14 mgd water treatment facility. *Added capacity plus existing capacity will satisfy the 10 year and 20 year demand from Table 2; Chadwick Lake safe yield of 2.0 mgd has not been included in this added capacity determination given that the most conservative condition is being evaluated, i.e., Chadwick Lake not available on a continuous basis due to seasonally occurring water quality constraints. The reduced costing for an added capacity of 6 mgd as opposed to 8 mgd (the condition when Chadwick Lake is in continuous operation with no seasonal constraints) is described in Appendix B; Alternative 1C: total cost of $61,277,000 includes $27,641,000 for the 6 mgd membrane filtration plant at Shaft 5A and $33,635,000 for a 5 mgd direct filtration plant in the Town of new Windsor at Stewart International Airport, see Table 6; the membrane plant is assumed to be off-line during prolonged Delaware Aqueduct shutdowns.

5-2 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

• The estimated capital cost for each alternative was calculated by adding the following costs to the total construction cost:

a. A bid market allowance corresponding to 5% of the total construction costs was assumed.

b. A contractor’s overhead and profit corresponding to 10% of the total construction cost was assumed.

c. The cost for design engineering and construction management was assumed to be 20% of the total construction cost.

• The capital and O&M costs for the membrane filtration plant to be constructed at Shaft 5A under Alternative 1C was estimated for a future capacity of 6 mgd based on the current design capacity of the membrane filtration plant.

• The operation and maintenance (O&M) costs were estimated based on the January 2010 version of the HDR Cost Estimating Guideline. This guideline was developed by HDR in 2004 to assist the Environmental Protection Agency (EPA) on creating their cost estimating manuals. The cost estimating guideline includes operation and maintenance costs for conveyance and treatment infrastructure at different flow capacities. The O&M costs for the conveyance infrastructure are generally defined in the guideline as a percentage of construction cost as follows:

a. The O&M costs for pipelines and wells are estimated as approximately 1% of the total construction cost of the pipeline or well. The cost of the taps to the Catskill aqueduct was assumed to be similar to the cost of the pipelines and wells, and was estimated as 1% of the tap construction cost.

b. The O&M costs for pump stations correspond to 2.5% of the pump station construction costs. This cost includes the entire power infrastructure but not the energy cost for pumping. The pumping energy cost was determined separately based on the estimated horse power of the pumps at a given flow capacity and the Central Hudson Gas and Electric’s average residential rate per kilowatt-hr from 2010 to 2012.

• The O&M costs were escalated from 2008 dollars to 2010 dollars based on the Engineering News Record (ENR) construction cost index (CCI) increment of 3% between 2008 and 2009. In addition, the O&M costs were prorated according to the planned flow capacity, and were escalated to New York State construction costs, which according the RS Means cost books, are 15% to 30% above the national average construction costs.

• The total estimated project cost does not include sales tax, permitting, legal costs, land acquisition, unusual geotechnical costs, environmental impact, and decommission of existing plants.

5-3 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

5.1 JOINT TOWN OF NEW WINDSOR/ TOWN OF NEWBURGH PLANT SUPPLIED WITH A NEW YORK CITY CATSKILL AQUEDUCT WATER TAP, AND LOCATED AT THE STEWART INTERNATIONAL AIRPORT

The capital cost for this alternative included the cost for a direct filtration Plant, a new tap to the Catskill Aqueduct, and the cost of the conveyance infrastructure determine to be required. As discussed in Section 3 of this report, this alternative presents three different options in terms of location and plant size. Therefore, costs for each option were estimated separately. Table 6 below, presents a summary of the capital and O&M costs for each option within this alternative.

Table 6. Alternative 1 Cost Summary

Upfront Capital Annual Alternative Cost O&M Costs 1A. Joint Filtration Plant Located in Town of Newburgh - New 8 mgd direct filtration plant $42,120,000 $1,652,730 - New Town of Newburgh Interconnect (20” and 16”) $957,000 $7,806 - New Tap to Catskill Aqueduct (20”) $2,164,000 $16,028 - New Town of New Windsor Interconnect (12”) $1,833,000 $13,950 - Maintain and Operate the Existing Riley Road Plant - $1,190,209 Total Costs Alternative 1A $47,124,000 $2,880,000 1B. Joint Filtration Plant Located in Town of New Windsor - New 8 mgd direct filtration plant $42,120,000 $1,652,730 - New Town of Newburgh Interconnect (16”-under runway) $4,001,000 $29,634 - New Tap to Catskill Aqueduct (20”) $2,164,000 $16,028 - New 5 mgd Pump Station to Town of Newburgh $5,064,000 $93,750 - Pumping Energy Cost - $365,958 - Maintain and Operate the Existing Riley Road Plant - $1,190,209 Total Costs Alternative 1B $53,349,000 $3,348,000 1C. Joint Filtration Plant Located in Town of New Windsor and with Membrane Filtration Plant at Shaft 5A - New 5 mgd direct filtration plant $26,325,000 $826,635 - New 6 mgd membrane filtration plant $27,641,300 $1,641,444 - New Town of Newburgh Interconnect (12”) $3,121,200 $23,118 - New Tap to Catskill Aqueduct (20”) $2,164,000 $16,028 - New 2 mgd Pump Station to Town of Newburgh $2,025,000 $37,500 - Pumping Energy Cost - $160,107 - Maintain and Operate the Existing Riley Road Plant - $1,190,209 Total Costs Alternative 1B $61,277,000 $3,895,000

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5.1.1 ALTERNATIVE 1A: JOINT TOWN OF NEWBURGH/TOWN OF NEW WINDSOR WATER FILTRATION PLANT LOCATED IN THE TOWN OF NEWBURGH

This alternative proposes an 8 mgd direct filtration plant located within the limits of the Town of Newburgh, northwest of the Stewart International Airport. A new 20” tap to the Catskill aqueduct will be required for supplying water to this plant. It was also determined that a 20” water main and a 16” water main will be required to convey the water from the plant to the existing Town of Newburgh water transmission system and that the existing 8” main currently located of under the airport runway at the west end, will need to be upsized to a 12” pipe diameter to convey water from the plant to the Town of New Windsor water distribution system. The advantage of this alternative is that no pumping is required to convey the water from the plant to the Town of New Windsor, and that upsizing of the existing 8” water main under the runway could potentially be made by the slip-lining method, thus avoiding the cost of more expensive boring techniques.

The capital cost for this alternative was estimated to be $47,124,000, and the O&M cost was estimated to be $2,880,000.

5.1.2 ALTERNATIVE 1B: JOINT TOWN OF NEWBURGH/TOWN OF NEW WINDSOR WATER FILTRATION PLANT LOCATED IN THE TOWN OF NEW WINDSOR

This alternative proposes an 8 mgd direct filtration plant located in the Town of New Windsor, southwest of the Stewart International Airport. A new 20” tap to the Catskill aqueduct will be required for supplying water to this plant. A 16” water main will be required to convey the water from the existing 20” water main in the Town of New Windsor to the existing 16” water main located along route 17K in the Town of Newburgh. This new water main will need to be installed under the east end of the airport runway by the boring and jacking method of construction, which increases the capital construction costs as compared to Alternative 1A. In addition, due to the lower elevation of the plant relative to the Town of Newburgh water system’s elevation, pumping from the plant will required under this alternative which increases the capital and O&M costs.

The capital cost for this alternative was estimated to be $53,349,000, and the O&M cost was estimated to be $3,348,000.

5.1.3 ALTERNATIVE 1C: JOINT TOWN OF NEWBURGH/TOWN OF NEW WINDSOR 5 MGD WATER FILTRATION PLANT LOCATED IN THE TOWN OF NEW WINDSOR WITH A 4.8 MGD MEMBRANE FILTRATION PLANT LOCATED AT SHAFT 5A OF THE DELAWARE AQUEDUCT

This alternative proposes a 5 mgd direct filtration plant located in the Town of New Windsor, southwest of the Stewart International Airport and a new 4.8 mgd membrane filtration plant located at Shaft 5A of the Delaware Aqueduct. The cost for the membrane filtration plant was estimated for a capacity of 6 mgd which is the design capacity currently being used. Under this

5-5 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT alternative, the Chadwick Lake Filtration Plant will operate during the scheduled Shaft 5A shutdown. However, O&M costs were estimated for the membrane plant for a conservative analysis, since the operating life of the membrane plant will exceed by far the time during which the Chadwick Lake Plant will need to be in operation. It is assumed that the Chadwick Lake Plant will be placed out of service when the membrane plant starts operating.

Therefore, a disadvantage of this alternative is the operation and maintenance of three treatment plants, including the existing Riley Road Plant, in addition to the need for pumping, and the need for a new 12” water main under the runway. Similar to alternatives 1A and 1B, this alternative will require a new 20” tap to the Catskill aqueduct in addition to the infrastructure mentioned above.

The capital cost for this alternative was estimated to be $61,277,000, and the O&M cost was estimated to be $3,895,000.

5.1.4 TOWN OF NEWBURGH/TOWN OF NEW WINDSOR JOINT WATER FILTRATION PLANT CONNECTIONS TO THE CATSKILL OR DELAWARE AQUEDUCTS.

Construction of a new 36” water main from Shaft 4 to the new joint water filtration plant, to run parallel to the existing Catskill Aqueduct will provide flexibility and reliability to the water supply system as discussed in Section 3 of this report. If this option would be implemented, the cost for constructing and maintaining this water main will need to be added to the costs estimated for alternatives 1A, B and C. It was estimated that approximately 10 miles of 36” water main would be required from Shaft 4 to the joint plant. The construction costs for Shaft 4 were not included under this option since its construction and maintenance will be paid by the New York City’s Department of Environmental Protection.

The capital cost for this optional water main was estimated to be $29,553,000, and the O&M cost was estimated to be $219,000.

5.2 ALTERNATIVE 2: EXPANSION OF CITY OF NEWBURGH WATER TREATMENT PLANT TO SERVE AS A REGIONAL FACILITY

This alternative proposes the expansion of the existing Washington Lake Plant which has a current treatment capacity of 9.5 mgd. The plant will require an expansion of 4.5 mgd to be obtained from the Catskill Aqueduct, thus assuming direct filtration treatment will be installed for the plant expansion. The infrastructure required for this alternative includes a new 16” tap at the Catskill aqueduct, a 16” water main from the plant to the Town of Newburgh, and a 12” water main from the plant to the Town of New Windsor. The advantage of this alternative is that a 9 mgd pump station and 16” interconnect already exists to convey water from the Catskill Aqueduct to the plant, however, the O&M costs of this infrastructure is included in the total O&M cost for this alternative.

The capital cost for this alternative was estimated to be $26,185,000, and the O&M cost was estimated to be $3,097,000.

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5.3 ALTERNATIVES 3A AND 3B: JOINT TOWN OF NEW WINDSOR – TOWN OF NEWBURGH PLANT SUPPLIED WITH HUDSON RIVER WATER PUMPED TO THE NEW PLANT

This alternative proposes a 8 mgd plant treating water from the Hudson River. It is assumed for the purpose of the cost estimate that a reverse osmosis treatment will be required and that the operating and maintenance conditions will vary with the tidal effect on water quality, for which an average of the O&M costs for treatment of brackish water and seawater was used. This alternative will require the construction of an intake, an 8 mgd pump station from the intake to the plant, an 8 mgd pump station from the plant to the distribution system, and interconnects between the plant and the Towns which will vary with the location of the plant.

Alternative 3A considers the plant to be located at the Town of Newburgh, which will require approximately 19,500 linear feet of 12” water main, 10,000 linear feet of 16” water main, and 3,400 linear feet of 20” water main between the effluent pump station and the Town of New Windsor water distribution system. Alternative 3B considers the plant to be located at the Town of New Windsor, which will require approximately 10,400 linear feet of 16” water main and 12,600 linear feet of 20” water main from the effluent pump station and the Town of Newburgh water distribution system. The conveyance infrastructure required for these alternatives will be in addition to the treatment and conveyance infrastructure identified above.

The capital costs were estimated to be $113,568,000 for alternative 3A and $115,243,000 for alternative 3B. The O&M costs were estimated to be $8,602,000 and $8,617,000, respectively.

5.4 ALTERNATIVE 4: BASE CASE – SEPARATE PLANTS

This alternative does not include a regional approach for water supply, as discussed previously. Therefore, the costs for this alternative correspond to the costs that each municipality will need to cover in order to expand their own system. The costs for the Town of Newburgh were assumed to include the construction and operation of the membrane filtration plant at Shaft 5A of the Delaware Aqueduct and decommission of the Chadwick Lake Plant. The costs for the Town of New Windsor were estimated for expanding the existing Riley Road Plant from 3 mgd to 6 mgd and for replacing the existing tap to the Catskill Aqueduct.

The capital and O&M costs for the Town of Newburgh under this alternative were estimated to be $27,641,250 and $1,641,000, respectively. The capital and O&M costs for the Town of New Windsor under this alternative were estimated to be $16,280,000 and $1,436,765, respectively.

The capital and O&M costs for the above alternatives were calculated in 2010 dollars. The financial analysis will escalate these costs over the life of the plants, and will consider the effects of debt, water demand, and existing infrastructure to help determine the most cost effective alternative

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6. FINANCIAL ANALYSIS

The first step in the financial analysis is to adjust the Upfront Capital Investment (in 2010 dollars) to the estimated mid-point of construction in order to provide projected bid prices and related costs for each of the alternatives at the time of construction. It is assumed that construction would begin in 2013 and be completed in 2015; thus, the year 2014 was used as the mid-point of construction. Tables 7, 8 and 9 depict the conceptual cost estimates for the various water supply alternatives. The Upfront Capital Investment figures for each of the options are inflated at the rate of 3% annually for a period of four years to arrive at the figures presented in the column Upfront Capital Investment (A.). The actual rate of inflation in such costs between 2010 and 2014 could be higher or lower than the assumed rate.

It is assumed that funds will be borrowed to pay for the Upfront Capital Investment (A.) and that the interest payable on these borrowed funds will be capitalized (i.e., paid for through the proceeds of borrowed funds) during the period of construction. The Interest During Construction (B.) column in the financial analysis illustrates the estimated interest cost based on the assumptions that the average principal amount outstanding during the two-year period (2013 to 2015) will be two-thirds of the total Upfront Capital Investment (A.) and that interest is computed on a simple basis at 3% annually. The interest rate assumption is much higher than what would be available in the financial markets at the time of this analysis (October 2010) but there is no certainty that interest rates at the time of financing will be higher, lower or the same as current rates.

There will be costs associated with the issuance of debt including underwriters fees, legal fees, printing costs for documents, etc. An allowance of 1.5% of the needed funds has been included to provide for the cost of issuance. In the event that the agency responsible for borrowing the funds is required to deposit monies into a debt service reserve fund, it may also be necessary to include in the cost of issuance an allowance for such deposits (typically equal to one year of principal and interest payments on the bonds). Such a deposit will increase the size of the bond issue and increase the debt service on the bonds compared to the results presented in this analysis. Interest earnings on the debt service reserve fund would help offset a portion of the increase in debt service.

The estimate of Total Debt Issued is the sum of the Upfront Capital Investment (A.) plus Interest During Construction (B.) plus Cost of Issuance (C.). The Annual Debt Service (E.) represents the calculated principal and interest payments that would be due annually to repay the debt. Debt service was calculated assuming that the bonds issued would have a 30 year term and carry an average interest rate of 6%. The interest rate assumption is once again much higher than what would be available in the financial markets at the time of this analysis but there is no certainty that interest rates at the time of financing will be higher, lower or the same as current rates.

The annual costs for operation and maintenance of the water systems for each alternative are presented in 2010 dollars in the column Annual O&M Costs. It is assumed that such costs will increase with inflation to the first year of operation of the water systems in 2015. The amounts presented in the column Annual O&M Costs (F.) reflect the use of a 3% annual increase in costs for the five year period of 2010 to 2015. The Total Annual Costs (G.) is the sum of the principal and interest payments on the debt for each alternative in column Annual Debt Service (E.) plus Annual O&M Costs (F.) in 2015.

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Table 7. Comparison of Alternatives – Capital Investment

Upfront Upfront Annual Total Sales Total Sales Incremental Capital Capital O&M Year 1 Year 10 Sales Year Investment Alternative Investment Costs (MGD) (MGD) 10 (MGD) (A.) 1. Joint Town of Newburgh - Town of New Windsor Filtration Plant (Supplied with NYC Aqueduct Water) 1A Located in Town of Newburgh near $47,124,000 $2,880,000 5.64 8.5 2.86 $53,038,477 Cargo Rd, East of Stewart Airport* 1B Located in Town of New Windsor near $53,349,000 $3,348,000 5.64 8.5 2.86 $60,044,770 Existing Stewart Plant 1C Located in Town of New Windsor (5 MGD) + Shaft 5A Membrane Plant in $61,277,000 $3,895,000 5.64 8.5 2.86 $68,967,803 Town of Newburgh 2. Existing City of Newburgh Plant to Serve as a $26,185,000 $2,265,000 9.51 13.5 3.99 $29,471,448 Regional Facility 3. Joint Town of Newburgh - Town of New Windsor Desalination Plant (Supplied with Hudson River Water) 3A Located in Town of Newburgh at River $113,568,000 $8,602,000 5.64 8.5 2.86 $127,821,785 Rd north of Susan Dr* 3B Located in Town of New Windsor at $115,243,000 $8,617,000 5.64 8.5 2.86 $129,707,012 River Rd behind Hewitt Ln 4. Base Case - Local Supply 1. Newburgh $27,641,250 $1,641,000 2.81 4.5 1.69 $31,110,470 2. New Windsor $16,280,000 $1,436,765 2.83 4.0 1.17 $18,323,283 Notes: *Does not include land acquisition. *Cost in 2010 Dollars. (A.) Inflated to the midpoint of construction (2014) at 3% per year.

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Table 8. Comparison of Alternatives – Total Annual Costs

Interest Cost of Annual During Debt Debt Annual Total Construction Issuance Total Debt Service O&M Annual Alternative (B.) (C.) Issued (D.) (E.) Costs (F.) Costs (G.) 1. Joint Town of Newburgh – Town of New Windsor Filtration Plant Supplied with New York City

Aqueduct Water and Existing Riley Road Plant 1A. Located in the Town of New burgh $2,121,539 $827,400 $55,987,416 $4,067,425 $3,338,709 $7,406,134 1B. Located in the Town of New Windsor $2,401,791 $936,698 $63,383,259 $4,604,725 $3,881,250 $8,485,974 1C. Located in the Town of New Windsor and with $2,758,712 $1,075,898 $72,802,413 $5,289,016 $4,515,373 $9,804,389 Membrane Filtration Plant at Shaft 5A 2. Expansion of City of Newburgh Water Treatment Plant to Serve as a Regional Facility and Existing $1,178,858 $459,755 $31,110,061 $2,260,112 $2,625,756 $4,885,868 Riley Road Plant 3. Joint Town of Newburgh – Town of New Windsor Desalination Plant Supplied with Hudson River Water Pumped to the New Plant, and Existing Riley Road Plant 3A. Located in Town of Newburgh $5,112,871 $1,994,020 $134,928,676 $9,802,421 $9,972,076 $19,774,497 3B. Located in Town of New Windsor $5,188,280 $2,023,429 $136,918,722 $9,946,996 $9,989,465 $19,936,461 4. Base Case – Separate Plants

Town of Newburgh $1,244,419 $485,323 $32,840,213 $2,385,806 $1,902,369 $4,288,174 Town of New Windsor $732,931 $285,843 $19,342,058 $1,405,179 $1,665,604 $3,070,783 Notes: (B.) Assumes that interest costs during construction are capitalized at the rate of 3% (simple interest) using 2/3 of construction costs as the average amount outstanding for two years. (C.) Issuance costs are assumed to be 1.5% of needed funds (A.)+(B.). Issuance costs would be higher if revenue bonds are used in order to fund appropriate reserve funds. (D.) Total debt issued is the sum of (A.) plus (B.) plus (C.). (E.) Annual debt service is based on a 30 year term of the bonds, an assumed interest rate of 6% (current rates are lower) and level principal & interest payments. (F.) Annual O&M costs reflect a 3% per year inflator from 2010 to 2015 (5 years). (G.) Total annual costs reflects 2015 dollars and equals debt service (E.) plus O&M costs (F.).

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Table 9. Comparison of Alternatives - Costs & Rates

Cost & Rates Based on Costs & Rates Based on Total Sales Incremental Sales Cost Cost Per Per 80K Cost Per 80K gals, Rate Per gals, Rate Per 80K gals, Rate Per Year 1 MG, Year Year 10 MG, Year Year 10 MG, Year Alternative (H.) 1 (I.) (J.) 10 (K.) (L.) 10 (M.) 1. Joint Town of Newburgh – Town of New Windsor Filtration Plant Supplied with New York City Aqueduct Water and Existing Riley Road Plant 1A. Located in the Town of New burgh $287.81 $3,597.66 $217.21 $2,715.13 $645.55 $8,069.44 1B. Located in the Town of New Windsor $329.78 $4,122.21 $249.32 $3,116.48 $740.98 $9,262.26 1C. Located in the Town of New Windsor and with $381.01 $4,762.65 $288.30 $3,603.72 $856.83 $10,710.37 Membrane Filtration Plant at Shaft 5A 2. Expansion of City of Newburgh Water Treatment Plant to $112.61 $1,407.56 $92.32 $1,153.96 $312.35 $3,904.37 Serve as a Regional Facility and Existing Riley Road Plant 3. Joint Town of Newburgh – Town of New Windsor Desalination Plant Supplied with Hudson River Water Pumped to the New Plant, and Existing Riley Road Plant 3A. Located in Town of Newburgh $768.46 $9,605.80 $588.27 $7,353.33 $1,748.35 $21,854.31 3B. Located in Town of New Windsor $774.76 $9,684.48 $592.58 $7,407.25 $1,761.16 $22,014.54 Base Case – Separate Plants Town of Newburgh $334.47 $4,180.93 $237.10 $2,963.75 $631.33 $7,891.65 Town of New Windsor $237.83 $2,972.83 $196.08 $2,450.97 $670.35 $8,379.38 Notes: (H.) Total annual costs divided by the total sales in year 1 (2015); expressed as $ per 80,000 gallons which may be a reasonable annual quantity for a single family household. (I.) Total annual costs divided by the total sales in year 1 (2015); expressed as a rate per million gallons (MG). (J.) Total annual costs divided by the total sales in year 10 (2024); O&M cost has increased, debt service remains the same; expressed as $ per 80,000 gallons. (K.) Total annual costs divided by the total sales in year 10 (2024); expressed as a rate per million gallons (MG). (L.) Total annual costs divided by the incremental sales in year 10 (2024); expressed as $ per 80,000 gallons which may be a reasonable annual quantity for a single family household. (M.) Total annual costs divided by the incremental sales in year 10 (2024); expressed as a rate per million gallons (MG).

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The next four columns in the financial analysis present the estimated annual costs in terms of a cost per 80,000 gallons of water of annual use as well as a rate per million gallons assuming that all users of the water system share in the costs of the improvements (referred to as Total Sales). We used 80,000 gallons of water each year as an estimate of what a single family household could use each year. Actual annual use by household could vary; usage could be higher for large families, homes where extensive lawn or garden watering takes place and other customers and lower for users such as senior citizens or one person households. The Cost Per 80K gals, Year 1 (H.) column reflects the Total Annual Costs (G.) divided by the total water sales in 2015 for each water system as a whole to arrive at a cost per million gallons of water sold times 80,000 gallons of water used each year. The rate per million gallons in 2015 is presented in the column Rate Per MG, Year 1 (I.). The columns Cost Per 80K gals, Year 10 (J.) and Rate Per MG, Year 10 (K.) present similar information for the tenth year of operation which is assumed to be 2024. The year 10 illustrations assume that no additional debt is issued so the annual debt service remains the same. O&M expenses are assumed to increase at the rate of 3% annually. The actual rate of inflation could be different from the assumed rate. The estimated total water sales as projected by HDR are higher in 2024 than in 2015 for each of the alternatives. The preceding estimates of costs and rates do not include allowances for uncollectible billings.

Since the above options are based on both existing and new users paying a share of the costs of each alternative, the total cost to existing users would be the amount they would pay for current facilities and operations plus the cost of potential new facilities. For example, users in the City of Newburgh currently pay a rate of $3.97 per 1,000 gallons of water use or $3,970 per million gallons. Under the Total Sales scenario and Alternative 2, City users would pay charges for both existing facilities and the potential new facilities. Customers in the Town of Newburgh pay rates that increase with increasing usage, beginning at $8 for the first 7,500 gallons of quarterly use (equivalent to $1.07 per 1,000 gallons) and gradually rising to the highest tier of $3.15 per 1,000 gallons for quarterly use in excess of 100,000 gallons. Under the Total Sales scenario and the options that include the Town, users in the Town would pay charges for both existing facilities and the potential new facilities.

The columns Cost Per 80K gals, Year 10 (L.) and Rate Per MG, Year 10 (M.) present similar information for the tenth year of operation but the estimates of cost per 80,000 gallons for a single family customer and a rate per million gallons are based on incremental water sales instead of the total sales. The cost and rate are much higher, reflecting the fact that incremental sales are much lower than total sales. A significant challenge associated with using incremental sales is that such sales are assumed to be zero at the beginning of the first year of operation. Debt service on bonds issued will have to be paid beginning in 2015 and while O&M costs may be less than projected if consumption is very low in the first year, there will still be O&M expenses to be paid and a limited or no customer base to pay.

The preceding scenarios have illustrated costs and charges under Total Sales and Incremental Sales scenarios. It is also possible to structure an approach where existing users pay a portion of the costs of the new facilities but the incremental users pay a greater share.

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7. SUMMARY

Since 2008, the Orange County Water Authority (OCWA), the Orange County Department of Planning (OCDP), and the multitude of water purveyors within the cities, villages, and towns of the County have been working collaboratively to develop a water master plan for the region. This plan has focused on protecting and conserving the region’s water sources in addition to establishing a frame work which would ensure that the County’s water supply will continue to meet the demand associated with the region’s growing population. One key recommendation of the plan was to undertake a feasibility study to evaluate the modification and enhancement of the existing connections to the New York City Aqueduct System in the northeast section of the County. In particular, given the breadth and scope of their existing systems and their association with the New York City Aqueduct System, the Towns of Newburgh, and New Windsor, and the City of Newburgh, are central to the development of such a regional water resource management strategy. Accordingly, the OCWA commissioned a feasibility study to evaluate the construction of a “regional” water treatment facility which would serve the multiple municipalities in the northeast section of the county and would provide a sustainable return on investment for all involved parties. The Authority intends to utilize the information obtained from this exercise to support the implementation of the preferred regional water supply option identified in the feasibility study. This Implementation Plan will ultimately lead to a Facility Plan, a financial implementation strategy, and a Basis of Design Report (BODR) for the preferred alternative.

7.1 RESULTS

The study determined that in order to address the projected system needs for the Towns of Newburgh and New Windsor, and the City of Newburgh, four distinct water treatment alternatives needed to be evaluated. These alternatives are described below:

(1) Alternative 1: Joint Town of New Windsor/Town of Newburgh Water Treatment Plant- this alternative has been approached from three perspectives: (1A) a plant is located at Stewart International Airport in the Town of New Windsor, (1B) a plant is located at Stewart International Airport in the Town of Newburgh, and (1C) a plant is located at Stewart International airport in the Town of New Windsor with a smaller design capacity of 5 mgd and the Town of Newburgh would design and construct the filtration plant at Shaft 5A as mandated by the Town’s existing administrative order with the USEPA. All Stewart airport locations would use water supplied from a new tap which would be installed on the Catskill Aqueduct. It was assumed that in the future, the Catskill Aqueduct could receive either Catskill or Delaware Aqueduct water given that the aqueduct interconnection at Shaft 4 of Delaware Aqueduct would be completed by 2015.

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(4) Alternative 4: Town of New Windsor and the Town of Newburgh each Proceed to Develop Separate Plants (base case) to meet their future water supply needs.

A conceptual cost estimate was developed for the four alternatives identified above. The infrastructure required by each alternative was determined based on the supply needs of each municipality, existing infrastructure, and potential location of water treatment facilities. Table 10 below lists the upfront capital cost for the added capacity to be developed for each of the four alternatives; annual operation and maintenance cost have been determined as well.

It was found that Alternative 2: Expansion of City of Newburgh Water Treatment Plant to serve as a Regional Facility for the Towns of Newburgh and New Windsor and the City of Newburgh had the lowest estimated capital cost and corresponding cost per gallon. This alternative also assumed that the Town of New Windsor’s Riley Road plant would continue to operate at a 3 mgd capacity and the Town of Newburgh’s Chadwick Lake Plant would not be decommissioned. Benefits accrued by expanding the existing City of Newburgh plant include the following:

(1) Utilize the excess capacity currently available at the plant; the Lake Washington supply also has a lower cost than NYC Aqueduct water, however at full capacity, the expanded facility would have to consistently supplement the Washington Lake source with NYC Catskill Aqueduct water; (2) The existing pump station and pipeline that transmits water from the NYC Catskill aqueduct connection to the plant is sized appropriately to meet future demand so that no construction modifications will be necessary; (3) Operations and maintenance costs can be spread across the three municipalities, thus reducing the individual O&M costs to each participant; cost sharing can be facilitated through the enactment of intermunicipal agreements. (4) Utilize dual treatment technologies to optimize treatment and reduce costs, i.e., conventional treatment for Washington Lake source water and direct filtration for aqueduct water (5) Assuming the elimination of aqueduct taps at Stewart Airport and Shaft 5A of the Delaware aqueduct, the need for multiple connections to the NYC Aqueduct System would no longer be required. As such, there would be less administrative and engineering oversight required by NYC water supply staff. This mutually beneficial situation would support the formulation of a cost-sharing arrangement between various stakeholders; (6) Both the total and incremental costs and rates were found to be significantly less for Alternative 2 than all other options (see below); and (7) Opportunity would be provided to investigate the various institutional alternatives to establishing a regional water supply.

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Table 10. Summary of Costs

Added Cost Upfront Capacity per Annual Alternative Capital Cost * Gallon O&M Costs 1. Joint Town of Newburgh -Town of New Windsor Filtration Plant Supplied with New York City Aqueduct Water and Existing Riley Road Plant 1A. Located in Town of Newburgh $47,124,000 8 mgd $5.89 $2,880,000 1B. Located in Town of New Windsor $53,349,000 8 mgd $6.67 $3,348,000 1C. Located in Town of New Windsor and with Membrane Filtration $61,277,000 5 mgd $12.26 $3,895,000 Plant at Shaft 5A Joint Water Filtration Plant Connection to the Catskill or Delaware $29,553,000 N/A N/A $219,000 Aqueducts 2. Alternative 2: Expansion of City of Newburgh Water Treatment Plant to $26,185,000 8 mgd $3.27 $3,097,000 serve as a Regional Facility and Existing Riley Road Plant 3. Joint Town of Newburgh – Town of New Windsor Desalination Plant Supplied with Hudson River Water Pumped to the New Plant, and Existing Riley Road Plant 3A. Located in Town of Newburgh $113,568,000 8 mgd $14.20 $8,602,000 3B. Located in Town of New Windsor $115,243,000 8 mgd $14.41 $8,617,000 4. Alternative 4: Base Case – Separate Plants Town of Newburgh $27,641,250 6 mgd $4.61 $1,641,000 Town of New Windsor $16,280,000 3 mgd $5.43 $1,436,765 Notes: Costs in 2010 Dollars. The cost per gallon was estimated based on the estimated capital cost and the added capacity. Alternative 2 O&M costs were based on a fully operational 14 mgd water treatment facility. *Added capacity plus existing capacity will satisfy the 10 year and 20 year demand from Table 2; Chadwick Lake safe yield of 2.0 mgd has not been included in this added capacity determination given that the most conservative condition is being evaluated, i.e., Chadwick Lake not available on a continuous basis due to seasonally occurring water quality constraints. The reduced costing for an added capacity of 6 mgd as opposed to 8 mgd (the condition when Chadwick Lake is in continuous operation with no seasonal constraints) is described in Appendix B; Alternative 1C: total cost of $61,277,000 includes $27,641,000 for the 6 mgd membrane filtration plant at Shaft 5A and $33,635,000 for a 5 mgd direct filtration plant in the Town of new Windsor at Stewart International Airport, see Table 6; the membrane plant is assumed to be off-line during prolonged Delaware Aqueduct shutdowns.

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7.2 COST OF WATER

The results of the financial analysis are presented two sets of columns in Table 11. The first set of columns (H. through K.) present the rate for 80,000 gallons and the cost per million gallons assuming that all customers (both existing and future) pay a share of the costs of the new systems based on gallons used. The results are presented for both 2015 and 2024 (the tenth year of operation). The results range from a low of $92 per homeowner in year 10 for Alternative 2 to a high of $593 for Alternative 3B. These amounts apply only to the new systems. The second set of columns (L. and M.) assume that only future customers pay a share of the costs of the new systems based on gallons used. The cost per homeowner in Year 10 ranges from a low of $312 for Alternative 2 to $1,761 for Alternative 3B. In all cases, Alternative 2 had the lowest cost.

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Table 11. Comparison of Alternatives - Costs & Rates Cost & Rates Based on Costs & Rates Based on Total Sales Incremental Sales Cost Per Cost Per 80K Cost Per 80K gals, Rate Per gals, Rate Per 80K gals, Rate Per Year 1 MG, Year Year 10 MG, Year Year 10 MG, Year \Alternative (H.) 1 (I.) (J.) 10 (K.) (L.) 10 (M.) 1. Joint Town of Newburgh – Town of New Windsor Filtration Plant Supplied with New York City Aqueduct Water and Existing Riley Road Plant 1A. Located in the Town of New burgh $287.81 $3,597.66 $217.21 $2,715.13 $645.55 $8,069.44 1B. Located in the Town of New Windsor $329.78 $4,122.21 $249.32 $3,116.48 $740.98 $9,262.26 1C. Located in the Town of New Windsor and with Membrane $381.01 $4,762.65 $288.30 $3,603.72 $856.83 $10,710.37 Filtration Plant at Shaft 5A 2. Expansion of City of Newburgh Water Treatment Plant to Serve $112.61 $1,407.56 $92.32 $1,153.96 $312.35 $3,904.37 as a Regional Facility and Existing Riley Road Plant 3. Joint Town of Newburgh – Town of New Windsor Desalination Plant Supplied with Hudson River Water Pumped to the New Plant, and Existing Riley Road Plant 3A. Located in Town of Newburgh $768.46 $9,605.80 $588.27 $7,353.33 $1,748.35 $21,854.31 3B. Located in Town of New Windsor $774.76 $9,684.48 $592.58 $7,407.25 $1,761.16 $22,014.54 Base Case – Separate Plants Town of Newburgh $334.47 $4,180.93 $237.10 $2,963.75 $631.33 $7,891.65 Town of New Windsor $237.83 $2,972.83 $196.08 $2,450.97 $670.35 $8,379.38 Notes: (H.) Total annual costs divided by the total sales in year 1 (2015); expressed as $ per 80,000 gallons which may be a reasonable annual quantity for a single family household. (I.) Total annual costs divided by the total sales in year 1 (2015); expressed as a rate per million gallons (MG). (J.) Total annual costs divided by the total sales in year 10 (2024); O&M cost has increased, debt service remains the same; expressed as $ per 80,000 gallons. (K.) Total annual costs divided by the total sales in year 10 (2024); expressed as a rate per million gallons (MG). (L.) Total annual costs divided by the incremental sales in year 10 (2024); expressed as $ per 80,000 gallons which may be a reasonable annual quantity for a single family household. (M.) Total annual costs divided by the incremental sales in year 10 (2024); expressed as a rate per million gallons (MG).

7-5 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

7.3 NYC WATER RATE IMPLICATIONS IN RELATION TO ALTERNATIVES

With the exception of Alternative 2, the cost of NYC water was carried across all other alternatives involving the Towns of New Windsor and Newburgh and not factored in the overall operation and maintenance (O&M) cost since it was assumed to be a constant. However, the use and resultant cost of NYC water has a profound effect upon all the involved municipalities. Given the projected NYC water rate increases, the continued use of NYC water in the future will present a significant hardship to the northeast Orange County municipalities. As noted above, the use of Washington Lake’s excess capacity as described in Alternative 2 presents an opportunity for O&M cost savings (for the purpose of this exercise, the wholesale cost of NYC water was considered to be an operational cost). However, the lake’s excess capacity is currently undefined due to a lack of information concerning the safe yield of the lake. Nonetheless, alternative 2 will allow for less of a dependence on the NYC Catskill Aqueduct source and thus will help to reduce overall O&M costs. Moreover, less reliance on the use of NYC water is further compounded by the fact the cost of NYC water has been increasing primarily due to capital investments in the water supply system together with increasing property taxes on watershed properties. Long-term water consumption has been declining. The current rate for water purchases from the City within the monthly entitlement quantity is $1,149.72 per million gallons or about $0.86 per hundred cubic feet. For a single family household using 80,000 gallons of water per year, this equates to about $92 per year. Based on the most recent projections prepared in May 2010, the wholesale rate is projected to increase to $1,312.20 effective July 1, 2011, to $1,449.88 effective July 1, 2012 and to $1,585.50 effective July 1, 2013. These projections are preliminary and subject to change.

7.4 REGIONAL APPROACHES TO ADDRESS INTERMUNICIPAL WATER SUPPLY NEEDS

7-6 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT why other municipalities have evaluated formulating a regional water supply arrangement, i.e., a water authority, a joint water works, a water board, formulating intermunicipal agreements, are listed below:

• An authority offers the opportunity to refinance/restructure outstanding debt, generally even if that debt was previously refinanced – depending upon the specifics of the outstanding debt, there may be opportunities to improve the cash flow of the system; • A board will typically manage the assets well including making needed capital improvements since it is focused solely on wastewater and water facilities; • In situations where multiple jurisdictions are served, a board may offer the opportunity to revisit the business (including financial) relationships between the communities and can provide representation for multiple parties; • The authority/board could assume responsibility for financing future municipal improvements relating to water supply facilities which, for some municipalities, may require significant investments in the future; and • Water and sewer authorities in New York State generally have an excellent track record including improved bond ratings – better bond rating translate to lower costs of borrowing money for infrastructure improvements which provides benefits to ratepayers.

As noted in the County’s Water Master Plan, the OCWA can facilitate such a regional planning process by assisting in the establishment of a regional authority amongst the various stakeholders and providing a financing mechanism at the early stages of the initiative. The OCWA can also act as the coordinating entity with the New York State DOS, the Environmental Facilities Corporation, and other involved municipalities, i.e., NYC, Orange County towns and villages.

7.5 RECOMMENDATIONS\NEXT STEPS

Next steps to be taken in this regional water supply planning initiative include the following:

(1) The Towns of Newburgh and New Windsor, and the City of Newburgh should consider forming the Northeast Orange County Municipal Alliance\Workgroup for the purpose of implementing intermunicipal agreements for a regional water supply and other shared infrastructure and municipal projects; other communities, such as the Towns of Cornwall and Montgomery and the Village of Cornwall may want consider membership in the alliance\workgroup as well.

7-7 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

(2) The OCWA in conjunction with the OCDP and the Northeast Orange County Municipal Alliance should submit a NYSDOS Local Government Efficiency grant application this December 1, 2010 for an Efficiency Implementation Grant. This grant will provide the funding necessary to carry out the implementation of the regional water supply initiatives presented in this feasibility study. The implementation plan will (1) investigate the various institutional alternatives to establishing a regional water supply (2) develop a Facility Plan for the preferred alternative which defines the project goals and objectives by focusing on cost, operability, reliability, and constructability of the project. The exercise will include the performance of a safe yield analysis for both Washington Lake and Chadwick Lake, In addition, the Plan will articulate how the preferred alternative best meets the needs of the municipalities involved, and will present a baseline scope , schedule (including construction phase), and a budget (3) develop a Basis of Design Report (BODR). This report will establish the major design criteria for the proposed project and will include preliminary drawings and an itemized list of key scope elements. It is to provide a concise description of the project scope based on the conclusions of the Facility Plan, The BODR should be supplied to the NYS Environmental Facilities Corporation for inclusion in their Intended Use Plan and (4) evaluate the institutional and financial alternatives associated with the preferred alternative including but not limited to an intermunicipal agreement, formation of a regional water authority or, formation of a municipal joint water works. ..

(3) The feasibility of utilizing groundwater as an alternative source of supply should be evaluated. Test borings have been made over the years that indicate with a reasonable degree of certainty that below the Hudson River lays a freshwater aquifer that is sealed from the river itself by a non-permeable layer of clay. While the exact capacity of this aquifer is unknown it has been estimated to be of sufficient capacity to potentially fulfill the additional water quantities addressed in this report. The use of groundwater as a source of supply should be more fully explored.

(4) The Town of Newburgh should consider utilizing the results of this study to assist in applying to the USEPA with respect to its existing consent decreeer requiring the imminent design and construction of a water filtration plant at shaft 5A of the Delaware Aqueduct.

(5) The New York City Department of Environmental Protection should be included in this water supply planning initiative during the project’s early stages since the Department plays a critical role in the supply (and operation) of source water to the Orange County municipalities. In addition, since the project is mutually beneficial to both the Northeast Orange County municipalities and the City of New York, the potential for cost-sharing exists and warrants exploration.

(6) The OCDP\OCWA should consider facilitating or coordinating meetings of the newly formed Northeast Orange County Municipal Alliance\Workgroup until such time as the workgroup can begin to operate independently.

7-8 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study FINAL DRAFT

8. LITERATURE CITED

1. Orange County Water Master Plan, Orange County Water Authority, 124 Main Street, Goshen, New York, 10924. August 2010.

2. HDR Cost Estimating Guidelines, 2004.

3. Engineering News Record (ENR) Construction Cost Index (CCI), 2009.

4. New York City Department of Environmental Protection, Catskill Turbidity Control Study - Phase III Final Report, Contract CAT-211 Hazen and Sawyer, Gannett Fleming, December 31, 2007.

5. RS Means Cost Book- Third Quarter 2010.

8-1 Orange County Water Authority November 2010 NE Orange County Water Supply Feasibility Study

APPENDIX A

Estimated Conceptual Costs

Northeast Orange County Water Supply Feasibility Study Comparison of Alternatives Conceptual Cost Estimate

Upfront Capital Added Cost per Annual O&M Timeline Alternative Investment Capacity Gallon Costs Start Complete Operation 1. Joint Town of Newburgh - Town of New Windsor Filtration Plant (Suplied with NYC Aqueduct Water) 1A Located in Town of Newburgh near Cargo Rd, East of Stewart $ 47,124,000 8 MGD 5.89$ $ 2,880,000 2013 2015 30 yrs Airport* 1B Located in Town of New Windsor near Existing Stewart Plant (8 $ 53,349,000 8 MGD 6.67$ $ 3,348,000 2013 2015 30 yrs MGD) 1C Located in Town of New Windsor (5 MGD) + Shaft 5A Membrane $ 61,277,000 5 MGD 12.26$ $ 3,895,000 2013 2015 30 yrs Plant in Town of Newburgh Joint Water Filtration Plant Connection to the Catskill or Delaware $ 29,553,000 N/A N/A$ 219,000 2013 2014 30 yrs Aqueducts (New 10-mile 36" diameter pipeline) 2. Existing City of Newburgh Plant to Serve as a Regional Facility $ 26,185,000 8 MGD 3.27$ $ 3,097,000 2013 2015 30 yrs 3. Joint Town of Newburgh - Town of New Windsor Desalination Plant (Suplied with Hudson River Water) 3A Located in Town of Newburgh at River Rd north of Susan Dr* $ 113,568,000 8 MGD 14.20$ $ 8,602,000 2013 2015 30 yrs 3B Located in Town of New Windsor at River Rd behind Hewitt Ln $ 115,243,000 8 MGD 14.41$ $ 8,617,000 2013 2015 30 yrs 4. Base Case - Local Supply 1. Newburgh $ 27,641,250 6 MGD 4.61$ $ 1,641,000 2013 2015 30 yrs 2. New Windsor $ 16,280,000 3 MGD 3.26$ $ 1,436,765 2015 2015 30 yrs Cost in 2010 Dollars Alternative 2 O&M costs were based on a 12 mgd facility. *Added capacity plus existing capacity will satisfy the 10 year and 20 year demand from Table ES-2; Chadwick Lake safe yield of 2.0 mgd is not included in this added capacity determination ; **Alternative 1C: total cost of $61,277,000 includes $27,641,250 for the 6 mgd membrane filtration plant at Shaft 5A Northeast Orange County Water Supply Feasibility Study Conceptual Cost Estimate Assumptions

1. Decommission of the existing 3.2 MGD Chadwick Lake Plant in the Town of Newburgh is assumed for all Alternatives 2. Decommission of the existing 0.5 MGD Stewart Filtration Plant in the Town of New Windsor is assumed for all Alternatives 3. Operation of the Riley Road Plant in the Town of New Windsor, at its current capacity of 3.0 MGD is assumed for all Alternatives 4. Construction of the Shaft 4 Tap at the Delaware Aqueduct is assumed to be in operation 5. Construction of a new 36" DIP WM ("Tunnel") from Shaft 4, parallel to the Catskill Aqueduct is assumed to be optional and was calculated as a separate cost that could be added to Alternative 1. WM assumed to be mostly above ground. 6. Sewater Reverse Osmosis Process is assumed for the desalination plant 7. Direct Filtration with Ultraviolet disinfection is assumed for the Direct Filtration Plants 8. Cost of Desalination Plant and Direct Filtration Plants includes site development costs 9. Intake piping is assumed at 30" diameter based on a minimum velocity of 2.5 ft/s 10. Water Main sizes were determined based on mantaining a velocity between 2.5 and 8 ft/s. Distances are approximately measured. 11. Costs obtained from RS Means costbooks for the 3rd quarter of 2010. Costs from previous years were escalated assuming a yearly inflation rate of 3%. Costs obtained for another US location were escalated to NY costs by 33% in accordance with the RS Means Factor for the State of New York. 12. Total project cost does not include sales tax, legal costs, permitting, O&M, land acquisition, environmental impact, and unusual geotechnical costs. 13. A contingency of 35% of the direct construction cost is assuemed. Other indirect costs are assumed as follows: a. General Contractor overhead and profit , OH&P: 10% b. General Conditions including mobilization, testing, bonds: 10% c. Escalation to mid-point construction: 5% c. Bid Market Allowance: 5% c. Engineering and Construction Management: 20% 14. Cost for Desalination Plant escalated from Desalting handbook, 3rd edition, July 2003 Report No. 72 by US Dept. of interior and AWWA's 2004 "Water Desalting: A plannning Guide for Water Utilities". References used for lump sum estimates 15. Cost of DF Plant estimated as approximately 88% of the cost for a DAF Plant 16. Cost of DF Plant estimated from average from previous projects and prorated from DAF plants in City of Middletown, NY and Bronx, NY 17. Cost for tap to Catskill Aqueduct priced based ondetail for outside connection in CAT 211 Design Report by Hazen and Sawyer Consulting Alternative 1A Joint Town of Newburgh - Town of New Windsor Filtration Plant Supplied with NYC Aqueduct. Plant in Town of Newburgh Detailed Conceptual Capital Cost Estimate

Description Unit Qty Unit Cost Subtotal Total Source New 8 MGD Direct Filtration Plant MGD 8 $ 20,800,000 Estimated from Previous Projects TNB-TNW Interconnect LF 2,100 $ 225 $ 472,370 Calculated 20" DIP WM LF 1,500$ 149 $ 223,005 RS Means - 2010 20" Fittings EA 4$ 9,745.44 $ 36,545 RS Means - 2010 20" GV EA 2 $ 7,595 $ 15,189 RS Means - 2010 16" DIP WM LF 600$ 109 $ 65,514 RS Means - 2010 16" Fittings EA 2$ 2,979.45 $ 4,469 RS Means - 2010 16" GV EA 1 $ 6,076 $ 6,076 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 1,867$ 15.46 $ 28,859 RS Means - 2010 Underground Tape & Markers LF 2,100 $ 6.66 $ 13,986 RS Means - 2010 Job Conditions, Traffic Control, Utility Conflicts % 20 $ 78,729 Estimated New Tap to Catskill Aqueduct $ 1,068,550 Calculated 20" Steel Pipe LF 400$ 341.33 $ 136,533.3 RS Means - 2010 Pipe Excavation, Backfill, Bedding & Compaction CY 356 $ 15.46 $ 5,496.9 RS Means - 2010 20" Fittings EA 4 $ 9,745 $ 38,981.8 RS Means - 2010 20" GV EA 1 $ 7,595 $ 7,594.6 RS Means - 2010 Underground Tape & Markers LF 400 $ 6.66 $ 2,664.0 RS Means - 2010 Concrete & Installation of Outside Connection Vault CY 22$ 1,751.94 $ 39,138.7 RS Means - 2010_Mott Haven Estimate Excavation & Sheeting for Outside Connection vault CY 51 $ 164.84 $ 8,408.0 RS Means - 2010_Mott Haven Estimate Temporaty By-pass Connection: plugs, pumping, 24" pipe LS 1$ 583,143.56 $ 583,143.6 Estimated & RS Means - 2010 Job conditions and Disinfection % 30 $ 246,588.3 Upsize to 12" N.W's Exist 8" WM under Runway LF 2,400 $ 387 $ 929,990 Calculated 12" DIP WM LF 2,400 $ 76.61 $ 183,864.00 RS Means - 2010 12" GV EA 3 $ 4,557 $ 13,670.28 RS Means - 2010 Underground Tape & Markers LF 2,400 $ 6.66 $ 15,984.00 RS Means - 2010 Pipe Bursting Installation LF 2,400$ 163.63 $ 392,712.00 RS Means - 2010 - Estimated Job Conditions, Traffic Control, Runway Protection % 30 $ 323,757 Estimated

Direct Construction Cost Alternative 1A $ 23,271,000 Contingency (Conceptual Stage) 35% $ 8,144,850 General Conditions 10% $ 2,327,100 Escalation to Mid-Point 5% $ 1,163,550 Estimated Total Construction Cost $ 34,906,500 General Contractor's OH&P 10% $ 3,490,650 Bid Market Allowance 5% $ 1,745,325 Engineering and Construction Management 20% $ 6,981,300 Total Alternative 1A $ 47,124,000

Total Water Demand (MGD) 11 Total Additional Capacity (MGD) 8 Cost per Gallon $ 5.89 Alternative 1A Joint Town of Newburgh - Town of New Windsor Filtration Plant Supplied with NYC Aqueduct. Plant in Town of Newburgh Conceptual Operation and Maintenance (O&M) Cost Estimate

% of Estimated Estimated Estimated Description Cost1 Direct Cost Constr. Cost Annual O&M Source New 8 MGD Direct Filtration Plant 5% $ 20,800,000 $ 31,200,000 $ 1,652,730 Escalated2 - HDR Cost Est. Guide, Level 2, 10 MGD TNB-TNW Interconnect 1% $ 472,370 $ 708,555 $ 7,086 HDR Cost Est. Guide, Pipelines & Wells New Tap to Catskill Aqueduct 1% $ 1,068,550 $ 1,602,825 $ 16,028 HDR Cost Est. Guide, Pipelines & Wells Upsize to 12" N.W's Exist 8" WM under Runway 1% $ 929,990 $ 1,394,985 $ 13,950 HDR Cost Est. Guide, Pipelines & Wells Operate Existing Riley Rd Plant $ 1,190,209 Escalated2 - HDR CEG, Level 2, 1 MGD -Prorated

Total Estimated O&M Alternative 1A $ 2,880,000

Notes: 1. O&M Cost estimated as a percentage of Total Construction Cost, per HDR 2004 Cost Estimating Guide developed for EPA Guidance Manual's Cost Estimates. Costs inflated by 30% for NY prices. 2. Escalation from 2008 assumed as 3% per year. Conservative assumption based on ENR's Construction Cost Index (CCI) increment of 3.1% from 2008 to 2009, and 1.7% from 2009 to 2nd Quarter 2010 Alternative 1B Joint Town of Newburgh - Town of New Windsor Filtration Plant Supplied with NYC Aqueduct. Plant in Town of New Windsor Detailed Conceptual Cost Estimate

Description Unit Qty Unit Cost Subtotal Total Source New 8 MGD Direct Filtration Plant LS 1 $ 20,800,000 Estimated from Previous Projects TNB-TNW Interconnect LF 3,700 $ 534 $ 1,975,600 Calculated 16" DIP WM Perimeter Rd to Rt 17K LF 3,700 $ 109.2 $ 404,003.00 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 1,067 $ 15.46 $ 16,490.67 RS Means - 2010 16" Fittings EA 9$ 2,979.45 $ 27,559.91 RS Means - 2010 16" GV EA 4$ 6,075.68 $ 24,302.72 RS Means - 2010 Underground Tape & Markers LF 3,700 $ 6.66 $ 24,642.00 RS Means - 2010 Bore & Jack under Runway LF 2,500$ 409.08 $ 1,022,687.50 RS Means - 2010 Job Conditions, Traffic Control, Runway Protection % 30 $ 455,906 Estimated Replace Existing Tap to Catskill Aqueduct $ 1,068,550 Calculated 20" Steel Pipe LF 400 $ 341.33 $ 136,533.33 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 356 $ 15.46 $ 5,496.89 RS Means - 2010 20" Fittings EA 4$ 9,745.44 $ 38,981.76 RS Means - 2010 20" GV EA 1$ 7,594.60 $ 7,594.60 RS Means - 2010 Underground Tape & Markers LF 400 $ 6.66 $ 2,664.00 RS Means - 2010 Concrete & Installation of Outside Connection Vault CY 22$ 1,751.94 $ 39,138.7 RS Means - 2010_Mott Haven Estimate Excavation & Sheeting for Outside Connection vault CY 51 $ 164.84 $ 8,408.0 RS Means - 2010_Mott Haven Estimate Temporaty By-pass Connection: plugs, pumping, 24" pipe LS 1$ 583,143.56 $ 583,143.6 Estimated & RS Means - 2010 Job conditions and Disinfection % 30 $ 246,588.3 Estimated 5 MGD Pump Station to pump to TNB MG 5 $ 500,000 $ 2,500,000 $ 2,500,000 Estimated

Direct Construction Cost Alternative 1B $ 26,345,000 Contingency 35% $ 9,221,000 General Conditions 10% $ 2,634,500 Escalation to Mid-Point 5% $ 1,317,250 Estimated Total Construction Cost $ 39,517,750 General Contractor's OH&P 10% $ 3,951,775 Bid Market Allowance 5% $ 1,975,888 Engineering and Construction Management 20% $ 7,903,550 Total Alternative 1B $ 53,349,000

Total Water Demand (MGD) 11 Total Additional Capacity (MGD) 8 Cost per Gallon $ 6.67 Alternative 1B Joint Town of Newburgh - Town of New Windsor Filtration Plant Supplied with NYC Aqueduct. Plant in Town of New Windsor Conceptual Operation and Maintenance (O&M) Cost Estimate

% of Estimated Estimated Estimated Description Cost1 Direct Cost Constr. Cost Annual O&M Source New 8 MGD Direct Filtration Plant 5% $ 20,800,000 $ 31,200,000 $ 1,652,730 Escalated2 -HDR Cost Est. Guide, Level 2, 10 MGD TNB-TNW Interconnect 1% $ 1,975,600 $ 2,963,400 $ 29,634 HDR Cost Est. Guide, Pipelines & Wells Replace Existing Tap to Catskill Aqueduct 1% $ 1,068,550 $ 1,602,825 $ 16,028 HDR Cost Est. Guide, Pipelines & Wells 5 MGD Pump Station to pump to TNB 2.5% $ 2,500,000 $ 3,750,000 $ 93,750 HDR Cost Est. Guide, Pumps Pumping Energy Costs3,4,5 $ 365,958 See Note 5 Operate Existing Riley Rd Plant $ 1,190,209 Escalated2 - HDR CEG, Level 2, 1 MGD -Prorated

Total Estimated O&M Alternative 1B $ 3,348,000

Notes: 1. O&M Cost estimated as a percentage of Total Construction Cost, per HDR 2004 Cost Estimating Guide developed for EPA Guidance Manual's Cost Estimates 2. Escalation from 2008 assumed as 3% per year. Conservative assumption based on ENR's Construction Cost Index (CCI) increment of 3.1% from 2008 to 2009, and 1.7% from 2009 to 2nd Quarter 2010 3. Pump Station Cost includes Power Connection Cost but does not include Pumping Energy Costs. Energy Costs estimated separately 4. Combined Pump Horse Power for 5 MGD PS estimated from Previous HDR Design Project (PS-227) as 160 5. Cost based on Pumping on a 24/7 basis, 365 days a year. Cost per KWh of $0.05 from to Central Hudson Gas & Electric residential rate for 2010 to 2012 Alternative 1C Joint Town of Newburgh - Town of New Windsor Filtration Plant Supplied with NYC Aqueduct. Plant in Town of New Windsor + Shaft 5A Membrane Plant Detailed Conceptual Cost Estimate

Description Unit Qty Unit Cost Subtotal Total Source New 5 MGD Direct Filtration Plant MGD 5 $ 13,000,000 Estimated from Previous Projects New 6 MGD Membrane Filtration Plant (Newburgh) $ 13,650,000 Estimated TNB-TNW Interconnect LF 3,700 $ 417 $ 1,541,230 Calculated 12" DIP WM Perimeter Rd to Rt 17K LF 3,700 $ 76.6 $ 283,457.00 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 1,067 $ 17.48 $ 18,645.33 RS Means - 2010 12" Fittings EA 9$ 2,425.84 $ 22,439.02 RS Means - 2010 12" GV EA 4$ 4,556.76 $ 18,227.04 RS Means - 2010 Underground Tape & Markers LF 3,700 $ 6.66 $ 24,642.00 RS Means - 2010 Bore & Jack under Runway LF 2,500$ 327.26 $ 818,150.00 RS Means - 2010 Job Conditions, Traffic Control, Runway Protection % 30 $ 355,668 Estimated Replace Existing Tap to Catskill Aqueduct $ 1,068,550 Calculated 20" Steel Pipe LF 400 $ 341.33 $ 136,533.33 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 356 $ 15.46 $ 5,496.89 RS Means - 2010 20" Fittings EA 4$ 9,745.44 $ 38,981.76 RS Means - 2010 20" GV EA 1$ 7,594.60 $ 7,594.60 RS Means - 2010 Underground Tape & Markers LF 400 $ 6.66 $ 2,664.00 RS Means - 2010 Concrete & Installation of Outside Connection Vault CY 22$ 1,751.94 $ 39,138.7 RS Means - 2010_Mott Haven Estimate Excavation & Sheeting for Outside Connection vault CY 51 $ 164.84 $ 8,408.0 RS Means - 2010_Mott Haven Estimate Temporaty By-pass Connection: plugs, pumping, 24" pipe LS 1$ 583,143.56 $ 583,143.6 Estimated & RS Means - 2010 Job conditions and Disinfection % 30 $ 246,588.3 Estimated 2 MGD Pump Station to pump to TNB MG 2 $ 500,000 $ 1,000,000 $ 1,000,000 Estimated

Direct Construction Cost Alternative 1C $ 30,260,000 19,500,000 Contingency 35% $ 10,591,000 20,475,000 General Conditions 10% $ 3,026,000 2,311,845 Escalation to Mid-Point 5% $ 1,513,000 1,602,825 Estimated Total Construction Cost $ 45,390,000 1,500,000 General Contractor's OH&P 10% $ 4,539,000 45,389,670 Bid Market Allowance 5% $ 2,269,500 Engineering and Construction Management 20% $ 9,078,000 Total Alternative 1C $ 61,277,000

Total Water Demand (MGD) 11 Total Additional Capacity (MGD) 5 Cost per Gallon $ 12.26 Alternative 1C Joint Town of Newburgh - Town of New Windsor Filtration Plant Supplied with NYC Aqueduct. Plant in Town of New Windsor + Shaft 5A Membrane Plant Conceptual Operation and Maintenance (O&M) Cost Estimate

% of Estimated Estimated Estimated Description Cost1 Direct Cost Constr. Cost Annual O&M Source New 5 MGD Direct Filtration Plant 4% $ 13,000,000 $ 19,500,000 $ 826,365 Escalated2 -HDR Cost Est. Guide, Level 2, 5 MGD New 6 MGD Membrane Filtration Plant (Newburgh) 8% $ 13,650,000 $ 20,475,000 $ 1,641,444 Note 2. HDR CEG, Lvl 3, Avg 1-10 MGD TNB-TNW Interconnect 1% $ 1,541,230 $ 2,311,845 $ 23,118 HDR Cost Est. Guide, Pipelines & Wells Replace Existing Tap to Catskill Aqueduct 1% $ 1,068,550 $ 1,602,825 $ 16,028 HDR Cost Est. Guide, Pipelines & Wells 2 MGD Pump Station to pump to TNB 2.5% $ 1,000,000 $ 1,500,000 $ 37,500 HDR Cost Est. Guide, Pumps Pumping Energy Costs3,4,5 $ 160,107 See Note 5 Operate Existing Riley Rd Plant $ 1,190,209 Escalated2 - HDR CEG, Level 2, 1 MGD -Prorated Chadwick Lake Plant (Op. only before Memb. Const) (Not used) $ 1,638,520 Escalated2 - HDR CEG, Level 3, 1 MGD -Prorated

Total Estimated O&M Alternative 1C $ 3,895,000

Notes: 1. O&M Cost estimated as a percentage of Total Construction Cost, per HDR 2004 Cost Estimating Guide developed for EPA Guidance Manual's Cost Estimates 2. Escalation from 2008 assumed as 3% per year. Conservative assumption based on ENR's Construction Cost Index (CCI) increment of 3.1% from 2008 to 2009, and 1.7% from 2009 to 2nd Quarter 2010 3. Pump Station Cost includes Power Connection Cost but does not include Pumping Energy Costs. Energy Costs estimated separately 4. Combined Pump Horse Power for 2 MGD PS estimated from Previous HDR Design Project (PS-227) as 70 5. Cost based on Pumping on a 24/7 basis, 365 days a year. Cost per KWh of $0.05 from to Central Hudson Gas & Electric residential rate for 2010 to 2012 Alternative 2 Existing City of Newburgh Plant to Serve as a Regional Facility Detailed Conceptual Capital Cost Estimate

Description Unit Qty Unit Cost Subtotal Total Source Lake Washington Plant Expansion to add 4.5 MGD LS 1 $ 10,530,000 Estimated from Previous Projects - Prorated Install City of New Windsor Existing Catskill Tap to Catskill Aqueduct LS 1 $ 949,160 Calculated 20" Steel Pipe LF 200$ 341.33 $ 68,267 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 178 $ 15.46 $ 2,748 RS Means - 2010 20" Fittings EA 2$ 9,745.44 $ 19,491 RS Means - 2010 20" GV EA 1$ 7,594.60 $ 7,595 RS Means - 2010 Underground Tape & Markers LF 200$ 6.66 $ 1,332 RS Means - 2010 Concrete & Installation of Outside Connection Vault CY 22$ 1,751.94 $ 39,138.7 RS Means - 2010_Mott Haven Estimate Excavation & Sheeting for Outside Connection vault CY 51$ 164.84 $ 8,408.0 RS Means - 2010_Mott Haven Estimate Temporaty By-pass Connection: plugs, pumping, 24" pipe LS 1$ 583,143.56 $ 583,143.6 Estimated & RS Means - 2010 Job conditions and Disinfection % 30 $ 219,036.9 CNB-TNB 16" Interconnect LF 7,500 $ 200 $ 1,500,100 Calculated 16" WM from NYS Thruway along Little Britain Road to Rt 207 LF 7,500 $ 109 $ 818,925 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 6,667$ 15.46 $ 103,067 RS Means - 2010 16" Fittings EA 75$ 2,979.45 $ 223,459 RS Means - 2010 16" GV EA 9$ 6,075.68 $ 54,681 RS Means - 2010 Underground Tape & Markers LF 7,500$ 6.66 $ 49,950 RS Means - 2010 Job Conditions, Traffic Control, Utility Conflicts % 20 $ 250,016 Estimated CNB-TNW 12" Interconnect LF 5,600 $ 161 $ 900,710 Calculated 12" Along Clarkview Rd from Union Rd to Rt 207 Rd and then along Rt 207 to Little Britain Rd LF 5,600 $ 77 $ 429,016 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 6,667$ 17.48 $ 116,533 RS Means - 2010 12" Fittings EA 56$ 2,425.84 $ 135,847 RS Means - 2010 12" GV EA 7$ 4,556.76 $ 31,897 RS Means - 2010 Underground Tape & Markers LF 5,600$ 6.66 $ 37,296 RS Means - 2010 Job Conditions, Traffic Control, Utility Conflicts % 20 $ 150,118 Estimated

Direct Construction Cost Alternative 2 $ 12,931,000 Contingency 35% $ 4,525,850 General Conditions 10% $ 1,293,100 Escalation to Mid-Point 5% $ 646,550 Estimated Total Construction Cost $ 19,396,500 General Contractor's OH&P 10% $ 1,939,650 Market Bid Allowance 5% $ 969,825 Engineering and Construction Management 20% $ 3,879,300 Total Alternative 2 $ 26,185,000

Total Water Demand (MGD) 17 Total Added Capacity (MGD) 8 Cost per Gallon $ 3.27 Alternative 2 Existing City of Newburgh Plant to Serve as a Regional Facility Conceptual Operation and Maintenance (O&M) Cost Estimate

% of Estimated Estimated Estimated Description Cost1 Direct Cost Constr. Cost Annual O&M Source Lake Washington Plant Expansion to add 4.5 MGD 6% $ 10,530,000 $ 15,795,000 $ 1,024,733 Escalated2 -HDR Cost Est. Guide, Lvl 2, Avg 1-10 MGD Install City of New Windsor Existing Catskill Tap to Catskill Aqueduct 1% $ 949,160 $ 1,423,740 $ 14,237 HDR Cost Est. Guide, Pipelines & Wells CNB-TNB 16" Interconnect 1% $ 1,500,100 $ 2,250,150 $ 22,502 HDR Cost Est. Guide, Pipelines & Wells CNB-TNW 12" Interconnect 1% $ 900,710 $ 1,351,065 $ 13,511 HDR Cost Est. Guide, Pumps Operate Existing 9 mgd Pump Station at Catksill Aqueduct Tap 2.5% $ 4,500,000 $ 6,750,000 $ 168,750 Estimated Pumping Energy Costs3,4,5 $ 663,298 See Note 5. Operate Existing Riley Rd Plant $ 1,190,209 Escalated2 - HDR CEG, Level 2, 1 MGD -Prorated

Total Estimated O&M Alternative 2 $ 3,097,000

Notes: 1. O&M Cost estimated as a percentage of Total Construction Cost, per HDR 2004 Cost Estimating Guide developed for EPA Guidance Manual's Cost Estimates 2. Escalation from 2008 assumed as 3% per year. Conservative assumption based on ENR's Construction Cost Index (CCI) increment of 3.1% from 2008 to 2009, and 1.7% from 2009 to 2nd Quarter 2010 3. Pump Station Cost includes Power Connection Cost but does not include Pumping Energy Costs. Energy Costs estimated separately 4. Combined Pump Horse Power for 5 MGD PS estimated from Previous HDR Design Project (PS-227) as 290 5. Cost based on Pumping on a 24/7 basis, 365 days a year. Cost per KWh of $0.05 from to Central Hudson Gas & Electric residential rate for 2010 to 2012 Alternative 3 Joint Town of Newburgh - Town of New Windsor Plant Supplied with Hudson River Water Detailed Conceptual Cost Estimate

Description Unit Qty Unit Cost Subtotal Total Source New 8 MGD Desalination Plant w/ RO LS 1 $ 46,955,000 From HDR previous cost estimate Plant LS 1 $ 42,436,000 $ 42,436,000 Desalting Handbook, AWWA - Escalated New Intake Structure $ 2,433,737.12 Calculated Intake Structure with Pumps LS 1$ 2,121,800.00 $ 2,121,800.00 Desalting Handbook, AWWA - Escalated 30" Pipe LF 1,000 $ 232.51 $ 232,512.50 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 889 $ 15.46 $ 13,742.22 RS Means - 2010 30" Fittings EA 3$ 14,495 $ 36,238.59 RS Means - 2010 30" GV EA 2$ 11,392 $ 22,783.80 RS Means - 2010 Underground Tape & Markers LF 1,000 $ 6.66 $ 6,660.00 RS Means - 2010 Concentrate Disposal $ 325,892.48 Calculated 12" Pipe LF 2,500 $ 76.61 $ 191,525.00 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 2,222 $ 17.48 $ 38,844.44 RS Means - 2010 12" Fittings EA 25$ 2,426 $ 60,646.00 RS Means - 2010 12" GV EA 4$ 4,557 $ 18,227.04 RS Means - 2010 Underground Tape & Markers LF 2,500 $ 6.66 $ 16,650.00 RS Means - 2010 Discharge $ 114,205.25 Calculated 20" Pipe LF 400 $ 148.67 $ 59,468.00 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 356 $ 15.46 $ 5,496.89 RS Means - 2010 20" Fittings EA 4$ 9,745 $ 38,981.76 RS Means - 2010 20" GV EA 1$ 7,595 $ 7,594.60 RS Means - 2010 Underground Tape & Markers LF 400 $ 6.66 $ 2,664.00 RS Means - 2010 Site Development $ 1,644,748.15 Calculated Clearing, Grubbing & Tree Chipping AC 5$ 17,045.63 $ 85,228.15 RS Means - 2010 Excavation to 10 ft deep CY 140,000 $ 2.16 $ 302,400.00 RS Means - 2007 - Escalated Grade, Fill & Compact - 5000' Haul CY 140,000 $ 4.32 $ 604,800.00 RS Means - 2007 - Escalated Erosion Control LS 1 $ 47,520.00 $ 47,520.00 From HDR Past Project - Escalated Soil Cement Stabilization (9% mix) SY 40,000 $ 15.12 $ 604,800.00 RS Means - 2007 - Escalated 8 MGD Pump Station from Desalt Plant to Distribution MG 8 $ 500,000 $ 4,000,000 $ 4,000,000 WM from Effl PS in Town of Newburg (at River Rd north of Susan Dr) $ 5,128,490 Calculated 12" WM from Desalt Effl. PS to CNB-TNW Interconnect Tap at River Rd LF 19,503 $ 76.61 $ 1,494,124.83 RS Means - 2010 12" WM Excavation, Backfill, Bedding & Compaction CY 17,336 $ 17.48 $ 303,033.28 RS Means - 2010 12" Fittings EA 49$ 2,426 $ 118,866.16 RS Means - 2010 12" GV EA 21$ 4,557 $ 95,691.96 RS Means - 2010 16" WM from Desalt Effl. PS to CNB-TNB Interconnect Tap at River Rd LF 10,023 $ 109.19 $ 1,094,411.37 RS Means - 2010 16" Fittings EA 25$ 2,979 $ 75,231.11 RS Means - 2010 16" GV EA 11$ 6,076 $ 66,832.48 RS Means - 2010 20" WM from Desalt Effl. PS to CNB-TNB Interconnect Tap at River Rd LF 3,404 $ 148.67 $ 506,072.68 RS Means - 2010 20" Fittings EA 9$ 9,745 $ 85,272.60 RS Means - 2010 20" GV EA 4$ 7,595 $ 30,378.40 RS Means - 2010 Description Unit Qty Unit Cost Subtotal Total Source 16" & 20" WM Excavation, Backfill, Bedding & Compaction CY 11,935 $ 15.46 $ 184,516.82 RS Means - 2010 Underground Tape & Markers LF 32,930 $ 6.66 $ 219,313.80 RS Means - 2010 Job Conditions, Traffic Control, Utility Conflicts % 20 $ 854,749 Estimated WM from Effl PS in Town of New Windsor (at River Rd behind Hewitt Ln) $ 5,954,910 Calculated 16" WM from Desalt Effl. PS to CNB-TNB Interconnect Tap at River Rd LF 10,443 $ 109.19 $ 1,140,271.17 RS Means - 2010 16" Fittings EA 26$ 2,979.45 $ 78,210.56 RS Means - 2010 16" GV EA 11$ 6,075.68 $ 66,832.48 RS Means - 2010 20" WM from Desalt Effl. PS to CNB-TNW Interconnect Tap at River Rd LF 12,597 $ 148.67 $ 1,872,795.99 RS Means - 2010 20" Fittings EA 126$ 9,745.44 $ 1,227,925.44 RS Means - 2010 20" GV EA 14$ 7,594.60 $ 106,324.40 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 20,480 $ 15.46 $ 316,620.80 RS Means - 2010 Underground Tape & Markers LF 23,040 $ 6.66 $ 153,446.40 RS Means - 2010 Job Conditions, Traffic Control, Utility Conflicts % 20 $ 992,485 Estimated

Direct Construction Cost Alternative 3A $ 56,083,000 Contingency 35% $ 19,629,050 General Conditions 10% $ 5,608,300 Escalation to Mid-Point 5% $ 2,804,150 Estimated Total Construction Cost $ 84,124,500 General Contractor's OH&P 10% $ 8,412,450 Market Bid Allowance 5% $ 4,206,225 Engineering and Construction Management 20% $ 16,824,900 Total Alternative 3A (Plant in Town of Newburgh) $ 113,568,000

Total Water Demand (MGD) 11 Total Additional Capacity (MGD) 8 Cost per Gallon $ 14.20

Direct Construction Cost Alternative 3B $ 56,910,000 Contingency 35% $ 19,918,500 General Conditions 10% $ 5,691,000 Escalation to Mid-Point 5% $ 2,845,500 Estimated Total Construction Cost $ 85,365,000 Contractor's O&P 10% $ 8,536,500 Market Bid Allowance 5% $ 4,268,250 Engineering and Construction Management 20% $ 17,073,000 Total Alternative 3B (Plant in Town of New Windsor) $ 115,243,000

Cost per Gallon $ 14.41

Alternative 3 Joint Town of Newburgh - Town of New Windsor Plant Supplied with Hudson River Water Conceptual Operation and Maintenance (O&M) Cost Estimate

% of Estimated Estimated Estimated Description Cost1 Direct Cost Constr. Cost Annual O&M Source New 8 MGD Desalination Plant w/ RO 9% $ 46,955,000 $ 70,432,500 $ 6,643,071 Note 2. HDR CEG Level 6, 10 MGD 8 MGD Pump Station from Desalt Plant to Distribution 3% $ 4,000,000 $ 4,600,000 $ 115,000 HDR CEG, Pipelines & Wells Pumping Energy Costs3,4,5 $ 594,681 See Note 5 Operate Existing Riley Rd Plant $ 1,190,209 Escalated2 - HDR CEG, L2, 1MGD -Prorated WM from Effl PS in Town of Newburg (at River Rd north of Susan Dr) 1% $ 5,128,490 $ 5,897,763 $ 58,978 HDR CEG, Pipelines & Wells

WM from Effl PS in Town of New Windsor (at River Rd behind Hewitt Ln) 1% $ 5,954,910 $ 7,443,638 $ 74,436 HDR Cost Est. Guide, Pumps

Total Estimated O&M Alternative 3A $ 8,602,000

Total Estimated O&M Alternative 3B $ 8,617,000

Notes: 1. O&M Cost estimated as a percentage of Total Construction Cost, per HDR 2004 Cost Estimating Guide developed for EPA Guidance Manual's Cost Estimates 2. Escalation from 2008 assumed as 3% per year. Conservative assumption based on ENR's Construction Cost Index (CCI) increment of 3.1% from 2008 to 2009, and 1.7% from 2009 to 2nd Quarter 2010 3. Pump Station Cost includes Power Connection Cost but does not include Pumping Energy Costs. Energy Costs estimated separately 4. Combined Pump Horse Power for 5 MGD PS estimated from Previous HDR Design Project (PS-227) as 260 5. Cost based on Pumping on a 24/7 basis, 365 days a year. Cost per KWh of $0.05 from to Central Hudson Gas & Electric residential rate for 2010 to 2012 Alternative 4 Base Case - Local Supply Detailed Conceptual Cost Estimate

Description Unit Cost Subtotal Total Source New 6 MGD Membrane Filtration Plant (Newburgh) LS 1 $ 13,650,000 Estimated Expand Existing Riley Road Plant from 3 MGD to 6 MGD LS 1 $ 7,020,000 Estimated from Previous Projects New Town of New Windsor Tap to Catskill Aqueduct $ 1,019,700 Calculated 20" Steel Pipe LF 350$ 341.33 $ 119,466.67 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 311$ 15.46 $ 4,809.78 RS Means - 2010 20" Fittings EA 2$ 9,745.44 $ 19,490.88 RS Means - 2010 20" GV EA 1$ 7,594.60 $ 7,594.60 RS Means - 2010 Underground Tape & Markers LF 350 $ 6.66 $ 2,331.00 RS Means - 2010 Concrete & Installation of Outside Connection Vault CY 22$ 1,751.94 $ 39,138.7 RS Means - 2010_Mott Haven Estimate Excavation & Sheeting for Outside Connection vault CY 51$ 164.84 $ 8,408.0 RS Means - 2010_Mott Haven Estimate Temporaty By-pass Connection: plugs, pumping, 24" pipe LS 1$ 583,143.56 $ 583,143.6 Estimated & RS Means - 2010 Job conditions and Disinfection % 30 $ 235,315.0 Estimated

Direct Construction Cost Alternative 4 $ 20,670,000 Contingency 35% $ 7,234,500 General Conditions 10% $ 2,067,000 Escalation to Mid-Point 5% $ 1,033,500 Estimated Total Construction Cost $ 31,005,000 General Contractor's OH&P 10% $ 3,100,500 Market Bid Allowance 5% $ 1,550,250 Engineering and Construction Management 20% $ 6,201,000 Total Alternative 4 $ 41,857,000

Total Water Demand (MGD) 11 Total Additional Capacity (MGD) 8 Cost per Gallon $ 5.23 Alternative 4 Base Case - Local Supply Conceptual Operation and Maintenance (O&M) Cost Estimate

Total Estimated O&M Alternative 4 - Town of Newburgh $ 1,641,000 Total Estimated O&M Alternative 4 - Town of New Windsor $ 1,436,765 Notes: 1. O&M Cost estimated as a percentage of Total Construction Cost, per HDR 2004 Cost Estimating Guide developed for EPA Guidance Manual's Cost Estimates 2. Escalation from 2008 assumed as 3% per year. Conservative assumption based on ENR's Construction Cost Index (CCI) increment of 3.1% from 2008 to 2009, and 1.7% from 2009 to 2nd Quarter 2010 Tunnel 36" DIP WM Parallel to Catskill Aqueduct Detailed Conceptual Capital Cost Estimate

Description Unit Qty Unit Cost Subtotal Total Source Tunnel from Shaft 4 to Regional Plant (Alternative 1) LF 52,800 296$ $ 15,636,255.20 Clearing and Grubbing AC 10 5,104.38$ $ 49,497.40 36" DIP WM LF 52,800 223.01$ $ 11,774,664.00 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 9,387 16.99$ $ 159,479.47 RS Means - 2010 36" GV EA 6 3,418$ $ 20,505.42 RS Means - 2010 Underground Tape & Markers LF 5,280 6.66$ $ 35,164.80 RS Means - 2010 Job Conditions, Stream Crossings, Protection of Catskill Aq % 30 $ 3,596,944.11

Direct Construction Cost Tunnel $ 15,636,255 Contingency (Conceptual Stage) 35% $ 5,472,689 Escalation to Mid-Point 5% $ 781,813 Estimated Total Construction Cost $ 21,890,757 General Contractor's OH&P 10% $ 2,189,076 Bid Market Allowance 5% $ 1,094,538 Engineering and Construction Management 20% $ 4,378,151 Total Tunnel $ 29,553,000

Total Water Demand (MGD) 11 Total Additional Capacity (MGD) 8 Cost per Gallon $ 3.69 Tunnel 36" DIP WM Parallel to Catskill Aqueduct Conceptual Operation and Maintenance (O&M) Cost Estimate

% of Estimated Estimated Estimated Description Cost1 Direct Cost Constr. Cost Annual O&M Source Tunnel from Shaft 4 to Regional Plant (Alternative 1) 1% $ 15,636,255 $ 21,890,757 $ 218,908 HDR Cost Est. Guide, Pipelines & Wells

Total Estimated O&M Alternative 1A $ 219,000

Notes: 1. O&M Cost estimated as a percentage of Total Construction Cost, per HDR 2004 Cost Estimating Guide developed for EPA Guidance Manual's Cost Estimates. Costs inflated by 30% for NY prices. Orange County Water Authority Unit Detail Report New Windsor, New York, 12553 Prepared By: Year 2010 Quarter 3 Lina Posso Date: 17-Sep-10 NE_OC_Water_Supply HDR Design-Build, Inc

LineNumber Description Quantity Unit Total Incl. Ext. Total Incl. O&P O&P

Division 02 Site Construction 020806000400 Utility Line Signs, Markers, and Flags, 1.00 C.L.F. $6.66 $6.66 underground tape, detectable, reinforced, aluminum foil core, 2", excludes excavation and backfill 022301000020 Clearing & grubbing, cut & chip light 1.00 Acre $5,104.38 $5,104.38 trees, to 6" diameter 022301000300 Clearing & grubbing, heavy trees, to 24" 1.00 Acre $17,045.63 $17,045.63 diameter, cut and chip 022504001500 Sheet piling, 27 psf, 20' excavation, left 1.00 S.F. $35.20 $35.20 in place, excludes wales 023154620700 Structural excavation for minor 1.00 B.C.Y. $129.64 $129.64 structures, bank measure, sandy soil, 12' to 18' deep, hand pits 023156100050 Excavating, trench or continuous footing, 1.00 B.C.Y. $10.73 $10.73 common earth, 3/8 C.Y. excavator, 1' to 4' deep, excludes sheeting or dewatering 023156100300 Excavating, trench or continuous footing, 1.00 B.C.Y. $11.22 $11.22 common earth, 1/2 C.Y. excavator, truck mounted, 4' to 6' deep, excludes sheeting or dewatering 023156100500 Excavating, trench or continuous footing, 1.00 B.C.Y. $9.20 $9.20 common earth, 3/4 C.Y. excavator, 6' to 10' deep, excludes sheeting or dewatering 023156400500 Fill by borrow and utility bedding, for 1.00 E.C.Y. $6.26 $6.26 pipe and conduit, compacting bedding in trench 024453000200 Horizontal boring, roadwork, 1/2" thick 1.00 L.F. $490.89 $490.89 wall, 36" diameter casing, includes casing only, 100' minimum, excludes jacking pits or dewatering 024453000200 Horizontal boring, roadwork, 1/2" thick 1.00 L.F. $490.89 $490.89 wall, 36" diameter casing, includes casing only, 100' minimum, excludes jacking pits or dewatering 025107302060 Water supply distribution piping, ductile 1.00 L.F. $53.76 $53.76 iron pipe, cement lined, mechanical joint, no fittings, 18' lengths, 8" diameter, class 50, excludes excavation or backfill 025107302100 Water supply distribution piping, ductile 1.00 L.F. $76.61 $76.61 iron pipe, cement lined, mechanical joint, no fittings, 18' lengths, 12" diameter, class 50, excludes excavation or backfill 025107302140 Water supply distribution piping, ductile 1.00 L.F. $109.19 $109.19 iron pipe, cement lined, mechanical joint, no fittings, 18' lengths, 16" diameter, class 50, excludes excavation or backfill 025107302170 Water supply distribution piping, ductile 1.00 L.F. $148.67 $148.67 iron pipe, cement lined, mechanical joint, no fittings, 18' lengths, 20" diameter, class 50, excludes excavation or backfill 025107302180 Water supply distribution piping, ductile 1.00 L.F. $186.01 $186.01 iron pipe, cement lined, mechanical joint, no fittings, 18' lengths, 24" diameter, class 50, excludes excavation or backfill

1 LineNumber Description Quantity Unit Total Incl. Ext. Total Incl. O&P O&P

025107308040 Water supply distribution piping, fitting, 1.00 Ea. $721.74 $721.74 90 degree bend or elbow, mechanical joint, ductile iron, cement lined, 8" diameter, class 50 water piping 025107308080 Water supply distribution piping, fitting, 1.00 Ea. $1,348.31 $1,348.31 90 degree bend or elbow, mechanical joint, ductile iron, cement lined, 12" diameter, class 50 water piping 025107308120 Water supply distribution piping, fitting, 1.00 Ea. $2,716.48 $2,716.48 90 degree bend or elbow, mechanical joint, ductile iron, cement lined, 16" diameter, class 50 water piping 025107308160 Water supply distribution piping, fitting, 1.00 Ea. $5,505.14 $5,505.14 90 degree bend or elbow, mechanical joint, ductile iron, cement lined, 20" diameter, class 50 water piping 025107308180 Water supply distribution piping, fitting, 1.00 Ea. $6,163.01 $6,163.01 90 degree bend or elbow, mechanical joint, ductile iron, cement lined, 24" diameter, class 50 water piping 025107308240 Water supply distribution piping, fitting, 1.00 Ea. $1,068.37 $1,068.37 wye or tee, ductile iron, cement lined, mechanical joint, 8" diameter, class 50 water piping 025107308280 Water supply distribution piping, fitting, 1.00 Ea. $2,425.84 $2,425.84 wye or tee, ductile iron, cement lined, mechanical joint, 12" diameter, class 50 water piping 025107308320 Water supply distribution piping, fitting, 1.00 Ea. $2,979.45 $2,979.45 wye or tee, ductile iron, cement lined, mechanical joint, 16" diameter, class 50 water piping 025107308360 Water supply distribution piping, fitting, 1.00 Ea. $9,745.44 $9,745.44 wye or tee, ductile iron, cement lined, mechanical joint, 20" diameter, class 50 water piping 025107308380 Water supply distribution piping, fitting, 1.00 Ea. $11,596.35 $11,596.35 wye or tee, ductile iron, cement lined, mechanical joint, 24" diameter, class 50 water piping Division 02 Subtotal $68,185.07 Division 03 Concrete 033102400820 Structural concrete, in place, column 1.00 C.Y. $1,901.39 $1,901.39 (4000 psi), square, avg reinforcing, 16" x 16", includes forms(4 uses), reinforcing steel, concrete, placing and finishing Division 03 Subtotal $1,901.39 Division 15 Mechanical 151076202160 Pipe, steel, black, welded, 12" diameter, 1.00 L.F. $204.80 $204.80 schedule 40, Spec. A-53, includes yoke & roll hanger assembly, sized for covering, 10' OC 151102002300 Valves, iron body, gate, non-rising stem, 1.00 Ea. $2,278.38 $2,278.38 flanged, 125 lb., 6" Division 15 Subtotal $2,483.18

2 HDR Regional Projects - Cost Estimating Guide_Draft January 2010 (Austin, TX) Level 0: Disinfection Only - This treatment process will be used for groundwater with no contaminants that exceed the regulatory limits. Assumes groundwater does not require treatment for taste and odor reduction and groundwater is stable and requires no treatment for corrosion stabilization. With this treatment, the ground water is suitable for public water system distribution, aquifer injection, and delivery to the recharge zone.

Level 1: Ground Water Treatment - This treatment process will be used for groundwater to lower the iron and manganese content and to disinfect. The process includes application of an oxidant and addition of phosphate to sequester iron and manganese. Chlorine disinfection as the final treatment. With this treatment, the ground water is suitable for public water system distribution, aquifer injection, and delivery to the recharge zone. Level 2: Direct Filtration Treatment - This treatment process will be used for treating ground water from sources where iron, manganese, or other constituent concentrations exceed the regulatory limit and require filtration for solids removal. Assumes turbidity and taste and odor levels are low. In the direct filtration process, low doses of coagulant and polymer are used and settling basins are not required as all suspeded solids are removed by filters. The process includes alum and polymer addition, rapid mix, flocculation, filtration, and disinfection. Water treatment with this process is suitable for aquifer injection or for delivery to the recharge zone. Level 3: Surface Water Treatment - This treatment process will be used for treating all surface water sources to be delivered to a potable water distribution system. The process includes coagulant and polymer addition, rapid mix, flocculation, settling, filtration, and disinfection with chlorine. This treatment process also applies for difficult to treat groundwater containing high concentrations of iron (greater than 3 mg/l) and manganese requiring settling before filtration. Level 4: Reclaimed Water Treatment - This process will be used for treatment where wastewater effluent is to be reclaimed and delivered to a supply system or injected to an aquifer. The concept includes increased treatment of wastewater effluent by phosphorous removal, storage in a reservoir, blending with surface runoff from the reservoir catchment, followed by conventional water treatment. Phosphorous will be removed from the effluent by lime softening including lime feed, rapid mix, flocculation, settling, recarbonation, and filtration. The final treatment assumes ozonation, activated carbon, addition of coagulant and polymer, rapid mix, flocculation, sedimentation, second application of ozone, filtration and disinfection with chlorine. This treatment results in water than can be delivered to a public water system for distribution or injection to the aquifer. Level 5: Brackish Groundwater Desalination - Note: This treatment cost does not include pretreatment for solids removal prior to RO membranes. For desalination of a surface water or groundwater containing high solids concentrations, additional solids removal treatment should be included in addition to desalination. (Example: add level 3 treatment costs for a turbid surface water source). This treatment process will be used for treatment of groundwater with total dissolved solids (TDS) exceeding the regulatory limit of 1,000 mg/l. Costs are based on reverse osmosis (RO) membrane desalination of a groundwater with 3,000 mg/l of TDS to lower the treated water TDS below the regulatory limit. The desalination concept includes minimal pretreatment (cartridge filtration, antiscalent addition, acid addition), reverse osmosis membrane system, and disinfection with chlorine. Costs assume desalination concentrate will be discharged to surface water adjacent to treatment plant. With this treatment, the ground water is suitable for public water system distribution, aquifer injection, and delivery to the recharge zone. Level 6: Seawater Desalination - Note:This treatment cost does not include pretreatment for solids removal prior to RO membranes. For desalination of a surface water or groundwater containing high solids concentrations, additional solids removal treatment should be included in addition to desalination. (Example - For desalination of seawater with an intake located on the coast drawing turbid water, cost estimate should include Level 3 treatment plus Level 6). This treatment process will be used for treatment of seawater with total dissolved solids (TDS) exceeding the regulatory limit of 1,000 mg/l. Costs are based on reverse osmosis (RO) membrane desalination of a water with 32,000 mg/l of TDS to lower the treated water TDS below the regulatory limit. The desalination concept includes minimal pretreatment (cartridge filtration, antiscalent addition, acid addition), reverse osmosis membrane system, and disinfection with chlorine. Costs assume desalination concentrate will be discharged to surface water adjacent to treatment plant. With this treatment, the ground water is suitable for public water system distribution, aquifer injection, and delivery to the recharge zone.

Source: HDR CEG Trans-Texas Study

APPENDIX B

Estimated Conceptual Costs: Inclusion of Chadwick Lake

Northeast Orange County Water Supply Feasibility Study Comparison of Alternatives with Chadwick Lake Plant in Operation Conceptual Cost Estimate

Upfront Capital Added Cost per Annual O&M Timeline Alternative Investment Capacity Gallon Costs Start Complete Operation 1. Joint Town of Newburgh - Town of New Windsor Filtration Plant (Suplied with NYC Aqueduct Water) 1A Located in Town of Newburgh near Cargo Rd, East of Stewart $ 36,209,000 6 MGD 6.03$ $ 3,738,000 2013 2015 30 yrs Airport* 1B Located in Town of New Windsor near Existing Stewart Plant (8 $ 39,700,000 6 MGD 6.62$ $ 4,027,000 2013 2015 30 yrs MGD) 1C Located in Town of New Windsor (5 MGD) + Shaft 5A Membrane $ 50,534,000 3 MGD 16.84$ $ 5,349,000 2013 2015 30 yrs Plant in Town of Newburgh Joint Water Filtration Plant Connection to the Catskill or Delaware $ 29,553,000 N/A N/A$ 219,000 2013 2014 30 yrs Aqueducts (New 10-mile 36" diameter pipeline) 2. Existing City of Newburgh Plant to Serve as a Regional Facility $ 16,014,000 6 MGD 2.67$ $ 3,925,000 2013 2015 30 yrs 3. Joint Town of Newburgh - Town of New Windsor Desalination Plant (Suplied with Hudson River Water) 3A Located in Town of Newburgh at River Rd north of Susan Dr* $ 88,420,000 6 MGD 14.74$ $ 6,892,000 2013 2015 30 yrs 3B Located in Town of New Windsor at River Rd behind Hewitt Ln $ 87,215,000 6 MGD 14.54$ $ 5,797,000 2013 2015 30 yrs 4. Base Case - Local Supply 1. Newburgh $ 27,641,250 6 MGD 4.61$ $ 2,734,000 2013 2015 30 yrs 2. New Windsor $ 16,111,400 3 MGD 5.37$ $ 1,435,513 2015 2015 30 yrs Cost in 2010 Dollars Alternative 2 O&M costs were based on a 12 mgd facility. *Added capacity plus existing capacity will satisfy the 10 year and 20 year demand from Table ES-2; Chadwick Lake safe yield of 2.0 mgd is included in this added capacity determination ; **Alternative 1C: total cost of $50,534,000 includes $27,641,000 for the 6 mgd membrane filtration plant at Shaft 5A and $22,892,750 for a 3 mgd direct filtration plant in the Town of New Windsor at Stewart International Airport; the membrane plant is assumed to be off-line during prolonged aqueduct shutdowns. Northeast Orange County Water Supply Feasibility Study Conceptual Cost Estimate with Chadwick Lake Plant in Operation Assumptions

1. Operation of the Chadwick Lake Plant in the Town of Newburgh is assumed for all Alternatives 2. Decommission of the existing 0.5 MGD Stewart Filtration Plant in the Town of New Windsor is assumed for all Alternatives 3. Operation of the Riley Road Plant in the Town of New Windsor, at its current capacity of 3.0 MGD is assumed for all Alternatives 4. Construction of the Shaft 4 Tap at the Delaware Aqueduct is assumed to be in operation 5. Construction of a new 36" DIP WM ("Tunnel") from Shaft 4, parallel to the Catskill Aqueduct is assumed to be optional and was calculated as a separate cost that could be added to Alternative 1. WM assumed to be mostly above ground. 6. Sewater Reverse Osmosis Process is assumed for the desalination plant 7. Direct Filtration with Ultraviolet disinfection is assumed for the Direct Filtration Plants 8. Cost of Desalination Plant and Direct Filtration Plants includes site development costs 9. Intake piping is assumed at 30" diameter based on a minimum velocity of 2.5 ft/s 10. Water Main sizes were determined based on mantaining a velocity between 2.5 and 8 ft/s. Distances are approximately measured. 11. Costs obtained from RS Means costbooks for the 3rd quarter of 2010. Costs from previous years were escalated assuming a yearly inflation rate of 3%. Costs obtained for another US location were escalated to NY costs by 33% in accordance with the RS Means Factor for the State of New York. 12. Total project cost does not include sales tax, legal costs, permitting, O&M, land acquisition, environmental impact, and unusual geotechnical costs. 13. A contingency of 35% of the direct construction cost is assuemed. Other indirect costs are assumed as follows: a. General Contractor overhead and profit , OH&P: 10% b. General Conditions including mobilization, testing, bonds: 10% c. Escalation to mid-point construction: 5% c. Bid Market Allowance: 5% c. Engineering and Construction Management: 20% 14. Cost for Desalination Plant escalated from Desalting handbook, 3rd edition, July 2003 Report No. 72 by US Dept. of interior and AWWA's 2004 "Water Desalting: A plannning Guide for Water Utilities". References used for lump sum estimates 15. Cost of DF Plant estimated as approximately 88% of the cost for a DAF Plant 16. Cost of DF Plant estimated from average from previous projects and prorated from DAF plants in City of Middletown, NY and Bronx, NY 17. Cost for tap to Catskill Aqueduct priced based ondetail for outside connection in CAT 211 Design Report by Hazen and Sawyer Consulting Alternative 1A with Chadwick Lake Plant in Operation Joint Town of Newburgh - Town of New Windsor Filtration Plant Supplied with NYC Aqueduct. Plant in Town of Newburgh Detailed Conceptual Capital Cost Estimate

Description Unit Qty Unit Cost Subtotal Total Source New 6 MGD Direct Filtration Plant MGD 6 $ 15,600,000 Estimated from Previous Projects TNB-TNW Interconnect LF 2,100 $ 185 $ 387,910 Calculated 16" DIP WM LF 2,100$ 109 $ 229,299 RS Means - 2010 16" Fittings EA 9$ 2,979.45 $ 26,815 RS Means - 2010 16" GV EA 4 $ 6,076 $ 24,303 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 1,867$ 15.46 $ 28,859 RS Means - 2010 Underground Tape & Markers LF 2,100 $ 6.66 $ 13,986 RS Means - 2010 Job Conditions, Traffic Control, Utility Conflicts % 20 $ 64,652 Estimated New Tap to Catskill Aqueduct $ 963,040 Calculated 16" Steel Pipe LF 400$ 273.07 $ 109,226.7 RS Means - 2010 Pipe Excavation, Backfill, Bedding & Compaction CY 356 $ 15.46 $ 5,496.9 RS Means - 2010 16" Fittings EA 4 $ 2,979 $ 11,917.8 RS Means - 2010 16" GV EA 1 $ 6,076 $ 6,075.7 RS Means - 2010 Underground Tape & Markers LF 400 $ 6.66 $ 2,664.0 RS Means - 2010 Concrete & Installation of Outside Connection Vault CY 22$ 1,401.55 $ 31,311.0 RS Means - 2010_Mott Haven Estimate Excavation & Sheeting for Outside Connection vault CY 51 $ 131.87 $ 6,726.4 RS Means - 2010_Mott Haven Estimate Temporaty By-pass Connection: plugs, pumping, 20" pipe LS 1$ 567,384.80 $ 567,384.8 Estimated & RS Means - 2010 Job conditions and Disinfection % 30 $ 222,241.0 Upsize to 12" N.W's Exist 8" WM under Runway LF 2,400 $ 387 $ 929,990 Calculated 12" DIP WM LF 2,400 $ 76.61 $ 183,864.00 RS Means - 2010 12" GV EA 3 $ 4,557 $ 13,670.28 RS Means - 2010 Underground Tape & Markers LF 2,400 $ 6.66 $ 15,984.00 RS Means - 2010 Pipe Bursting Installation LF 2,400$ 163.63 $ 392,712.00 RS Means - 2010 - Estimated Job Conditions, Traffic Control, Runway Protection % 30 $ 323,757 Estimated

Direct Construction Cost Alternative 1A $ 17,881,000 Contingency (Conceptual Stage) 35% $ 6,258,350 General Conditions 10% $ 1,788,100 Escalation to Mid-Point 5% $ 894,050 Estimated Total Construction Cost $ 26,821,500 General Contractor's OH&P 10% $ 2,682,150 Bid Market Allowance 5% $ 1,341,075 Engineering and Construction Management 20% $ 5,364,300 Total Alternative 1A $ 36,209,000

Total Water Demand (MGD) 11 Total Additional Capacity (MGD) 6 Cost per Gallon $ 6.03 Alternative 1A with Chadwick Lake Plant in Operation Joint Town of Newburgh - Town of New Windsor Filtration Plant Supplied with NYC Aqueduct. Plant in Town of Newburgh Conceptual Operation and Maintenance (O&M) Cost Estimate

% of Estimated Estimated Estimated Description Cost1 Direct Cost Constr. Cost Annual O&M Source New 6 MGD Direct Filtration Plant 6% $ 15,600,000 $ 23,400,000 $ 1,421,469 Note 2. HDR CEG, Lvl 2, Prorated 6 MGD TNB-TNW Interconnect 1% $ 387,910 $ 581,865 $ 5,819 HDR Cost Est. Guide, Pipelines & Wells New Tap to Catskill Aqueduct 1% $ 963,040 $ 1,444,560 $ 14,446 HDR Cost Est. Guide, Pipelines & Wells Upsize to 12" N.W's Exist 8" WM under Runway 1% $ 929,990 $ 1,394,985 $ 13,950 HDR Cost Est. Guide, Pipelines & Wells Operate Existing 3 MGD Riley Rd Plant $ 1,190,209 Escalated2 - HDR CEG, Level 2, 1 MGD -Prorated Operate Existing 2 MGD Chadwick Lake Plant $ 1,092,347 Escalated2 - HDR CEG, Level 3, 1 MGD -Prorated Total Estimated O&M Alternative 1A $ 3,738,000

Notes: 1. O&M Cost estimated as a percentage of Total Construction Cost, per HDR 2004 Cost Estimating Guide developed for EPA Guidance Manual's Cost Estimates. Costs inflated by 30% for NY prices. 2. Escalation from 2008 assumed as 3% per year. Conservative assumption based on ENR's Construction Cost Index (CCI) increment of 3.1% from 2008 to 2009, and 1.7% from 2009 to 2nd Quarter 2010 Alternative 1B with Chadwick Lake Plant in Operation Joint Town of Newburgh - Town of New Windsor Filtration Plant Supplied with NYC Aqueduct. Plant in Town of New Windsor Detailed Conceptual Cost Estimate

Description Unit Qty Unit Cost Subtotal Total Source New 6 MGD Direct Filtration Plant LS 1 $ 15,600,000 Estimated from Previous Projects TNB-TNW Interconnect LF 3,700 $ 417 $ 1,541,230 Calculated 12" DIP WM Perimeter Rd to Rt 17K LF 3,700 $ 76.6 $ 283,457.00 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 1,067 $ 17.48 $ 18,645.33 RS Means - 2010 12" Fittings EA 9$ 2,425.84 $ 22,439.02 RS Means - 2010 12" GV EA 4$ 4,556.76 $ 18,227.04 RS Means - 2010 Underground Tape & Markers LF 3,700 $ 6.66 $ 24,642.00 RS Means - 2010 Bore & Jack under Runway LF 2,500$ 327.26 $ 818,150.00 RS Means - 2010 Job Conditions, Traffic Control, Runway Protection % 30 $ 355,668 Estimated Replace Existing Tap to Catskill Aqueduct $ 963,040 Calculated 16" Steel Pipe LF 400 $ 273.07 $ 109,226.67 RS Means - 2010 Pipe Excavation, Backfill, Bedding & Compaction CY 356 $ 15.46 $ 5,496.89 RS Means - 2010 16" Fittings EA 4$ 2,979.45 $ 11,917.80 RS Means - 2010 16" GV EA 1$ 6,075.68 $ 6,075.68 RS Means - 2010 Underground Tape & Markers LF 400 $ 6.66 $ 2,664.00 RS Means - 2010 Concrete & Installation of Outside Connection Vault CY 22$ 1,401.55 $ 31,311.0 RS Means - 2010_Mott Haven Estimate Excavation & Sheeting for Outside Connection vault CY 51 $ 131.87 $ 6,726.4 RS Means - 2010_Mott Haven Estimate Temporaty By-pass Connect.: plugs, pumping, 20" pipe LS 1$ 567,384.80 $ 567,384.8 Estimated & RS Means - 2010 Job conditions and Disinfection % 30 $ 222,241.0 Estimated 3 MGD Pump Station to pump to TNB MG 3 $ 500,000 $ 1,500,000 $ 1,500,000 Estimated

Direct Construction Cost Alternative 1B $ 19,605,000 Contingency 35% $ 6,862,000 General Conditions 10% $ 1,960,500 Escalation to Mid-Point 5% $ 980,250 Estimated Total Construction Cost $ 29,407,750 General Contractor's OH&P 10% $ 2,940,775 Bid Market Allowance 5% $ 1,470,388 Engineering and Construction Management 20% $ 5,881,550 Total Alternative 1B $ 39,700,000

Total Water Demand (MGD) 11 Total Additional Capacity (MGD) 6 Cost per Gallon $ 6.62 Alternative 1B with Chadwick Lake Plant in Operation Joint Town of Newburgh - Town of New Windsor Filtration Plant Supplied with NYC Aqueduct. Plant in Town of New Windsor Conceptual Operation and Maintenance (O&M) Cost Estimate

% of Estimated Estimated Estimated Description Cost1 Direct Cost Constr. Cost Annual O&M Source New 6 MGD Direct Filtration Plant 6% $ 15,600,000 $ 23,400,000 $ 1,421,469 Escalated2 -HDR Cost Est. Guide, Level 2, 10 MGD TNB-TNW Interconnect 1% $ 1,541,230 $ 2,311,845 $ 23,118 HDR Cost Est. Guide, Pipelines & Wells Replace Existing Tap to Catskill Aqueduct 1% $ 963,040 $ 1,444,560 $ 14,446 HDR Cost Est. Guide, Pipelines & Wells 3 MGD Pump Station to pump to TNB 2.5% $ 1,500,000 $ 2,250,000 $ 56,250 HDR Cost Est. Guide, Pumps Pumping Energy Costs3,4,5 $ 228,724 See Note 5 Operate Existing 3 MGD Riley Rd Plant $ 1,190,209 Escalated2 - HDR CEG, Level 2, 1 MGD -Prorated Operate Existing 2 MGD Chadwick Lake Plant $ 1,092,347 Escalated2 - HDR CEG, Level 2, 1 MGD -Prorated Total Estimated O&M Alternative 1B $ 4,027,000

Notes: 1. O&M Cost estimated as a percentage of Total Construction Cost, per HDR 2004 Cost Estimating Guide developed for EPA Guidance Manual's Cost Estimates 2. Escalation from 2008 assumed as 3% per year. Conservative assumption based on ENR's Construction Cost Index (CCI) increment of 3.1% from 2008 to 2009, and 1.7% from 2009 to 2nd Quarter 2010 3. Pump Station Cost includes Power Connection Cost but does not include Pumping Energy Costs. Energy Costs estimated separately 4. Combined Pump Horse Power for 3 MGD PS estimated from Previous HDR Design Project (PS-227) as 100 5. Cost based on Pumping on a 24/7 basis, 365 days a year. Cost per KWh of $0.05 from to Central Hudson Gas & Electric residential rate for 2010 to 2012 Alternative 1C with Chadwick Lake Plant in Operation Joint Town of Newburgh - Town of New Windsor Filtration Plant Supplied with NYC Aqueduct. Plant in Town of New Windsor + Shaft 5A Membrane Plant Detailed Conceptual Cost Estimate

Description Unit Qty Unit Cost Subtotal Total Source New 3 MGD Direct Filtration Plant MGD 3 $ 7,800,000 Estimated from Previous Projects New 6 MGD Membrane Filtration Plant (Newburgh) $ 13,650,000 Estimated TNB-TNW Interconnect LF 3,700 $ 417 $ 1,541,230 Calculated 12" DIP WM Perimeter Rd to Rt 17K LF 3,700 $ 76.6 $ 283,457.00 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 1,067 $ 17.48 $ 18,645.33 RS Means - 2010 12" Fittings EA 9$ 2,425.84 $ 22,439.02 RS Means - 2010 12" GV EA 4$ 4,556.76 $ 18,227.04 RS Means - 2010 Underground Tape & Markers LF 3,700 $ 6.66 $ 24,642.00 RS Means - 2010 Bore & Jack under Runway LF 2,500$ 327.26 $ 818,150.00 RS Means - 2010 Job Conditions, Traffic Control, Runway Protection % 30 $ 355,668 Estimated Replace Existing Tap to Catskill Aqueduct $ 963,040 Calculated 16" Steel Pipe LF 400 $ 273.07 $ 109,226.67 RS Means - 2010 Pipe Excavation, Backfill, Bedding & Compaction CY 356 $ 15.46 $ 5,496.89 RS Means - 2010 16" Fittings EA 4$ 2,979.45 $ 11,917.80 RS Means - 2010 16" GV EA 1$ 6,075.68 $ 6,075.68 RS Means - 2010 Underground Tape & Markers LF 400 $ 6.66 $ 2,664.00 RS Means - 2010 Concrete & Installation of Outside Connection Vault CY 22$ 1,401.55 $ 31,311.0 RS Means - 2010_Mott Haven Estimate Excavation & Sheeting for Outside Connection vault CY 51 $ 131.87 $ 6,726.4 RS Means - 2010_Mott Haven Estimate Temporaty By-pass Connect.: plugs, pumping, 20" pipe LS 1$ 567,384.80 $ 567,384.8 Estimated & RS Means - 2010 Job conditions and Disinfection % 30 $ 222,241.0 Estimated 2 MGD Pump Station to pump to TNB MG 2 $ 500,000 $ 1,000,000 $ 1,000,000 Estimated

Direct Construction Cost Alternative 1C $ 24,955,000 Contingency 35% $ 8,734,000 General Conditions 10% $ 2,495,500 Escalation to Mid-Point 5% $ 1,247,750 Estimated Total Construction Cost $ 37,432,250 General Contractor's OH&P 10% $ 3,743,225 Bid Market Allowance 5% $ 1,871,613 Engineering and Construction Management 20% $ 7,486,450 Total Alternative 1C $ 50,534,000

Total Water Demand (MGD) 11 Total Additional Capacity (MGD) 3 Cost per Gallon $ 16.84 Alternative 1C with Chadwick Lake Plant in Operation Joint Town of Newburgh - Town of New Windsor Filtration Plant Supplied with NYC Aqueduct. Plant in Town of New Windsor + Shaft 5A Membrane Plant Conceptual Operation and Maintenance (O&M) Cost Estimate

% of Estimated Estimated Estimated Description Cost1 Direct Cost Constr. Cost Annual O&M Source New 3 MGD Direct Filtration Plant 10% $ 7,800,000 $ 11,700,000 $ 1,190,209 Escalated2 -HDR Cost Est. Guide, Level 2, 5 MGD New 6 MGD Membrane Filtration Plant (Newburgh) 8% $ 13,650,000 $ 20,475,000 $ 1,641,444 Note 2. HDR CEG, Lvl 3, Avg 1-10 MGD TNB-TNW Interconnect 1% $ 1,541,230 $ 2,311,845 $ 23,118 HDR Cost Est. Guide, Pipelines & Wells Replace Existing Tap to Catskill Aqueduct 1% $ 963,040 $ 1,444,560 $ 14,446 HDR Cost Est. Guide, Pipelines & Wells 2 MGD Pump Station to pump to TNB 2.5% $ 1,000,000 $ 1,500,000 $ 37,500 HDR Cost Est. Guide, Pumps Pumping Energy Costs3,4,5 $ 160,107 See Note 5 Operate Existing 3 MGD Riley Rd Plant $ 1,190,209 Escalated2 - HDR CEG, Level 2, 1 MGD -Prorated Operate Existing 2 MGD Chadwick Lake Plant $ 1,092,347 Escalated2 - HDR CEG, Level 3, 1 MGD -Prorated

Total Estimated O&M Alternative 1C $ 5,349,000

Notes: 1. O&M Cost estimated as a percentage of Total Construction Cost, per HDR 2004 Cost Estimating Guide developed for EPA Guidance Manual's Cost Estimates 2. Escalation from 2008 assumed as 3% per year. Conservative assumption based on ENR's Construction Cost Index (CCI) increment of 3.1% from 2008 to 2009, and 1.7% from 2009 to 2nd Quarter 2010 3. Pump Station Cost includes Power Connection Cost but does not include Pumping Energy Costs. Energy Costs estimated separately 4. Combined Pump Horse Power for 2 MGD PS estimated from Previous HDR Design Project (PS-227) as 70 5. Cost based on Pumping on a 24/7 basis, 365 days a year. Cost per KWh of $0.05 from to Central Hudson Gas & Electric residential rate for 2010 to 2012 Alternative 2 with Chadwick Lake Plant in Operation Existing City of Newburgh Plant to Serve as a Regional Facility Detailed Conceptual Capital Cost Estimate

Description Unit Qty Unit Cost Subtotal Total Source Lake Washington Plant Expansion to add 2.5 MGD LS 1 $ 5,850,000 Estimated from Previous Projects - Prorated Install City of New Windsor Existing Catskill Tap to Catskill Aqueduct LS 1 $ 879,000 Calculated 16" Steel Pipe LF 200$ 273.07 $ 54,613 RS Means - 2010 Pipe Excavation, Backfill, Bedding & Compaction CY 178 $ 15.46 $ 2,748 RS Means - 2010 16" Fittings EA 2$ 2,979.45 $ 5,959 RS Means - 2010 16" GV EA 1$ 6,075.68 $ 6,076 RS Means - 2010 Underground Tape & Markers LF 200$ 6.66 $ 1,332 RS Means - 2010 Concrete & Installation of Outside Connection Vault CY 22$ 1,401.55 $ 31,311.0 RS Means - 2010_Mott Haven Estimate Excavation & Sheeting for Outside Connection vault CY 51$ 131.87 $ 6,726.4 RS Means - 2010_Mott Haven Estimate Temporaty By-pass Connect.: plugs, pumping, 20" pipe LS 1$ 567,384.80 $ 567,384.8 Estimated & RS Means - 2010 Job conditions and Disinfection % 30$ 202,845.2 CNB-TNB 12" Interconnect LF 7,500 $ 154 $ 1,156,810 Calculated 12" WM from NYS Thruway along Little Britain Road to Rt 207 LF 7,500 $ 77 $ 574,575 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 6,667$ 17.48 $ 116,533 RS Means - 2010 12" Fittings EA 75$ 2,425.84 $ 181,938 RS Means - 2010 12" GV EA 9$ 4,556.76 $ 41,011 RS Means - 2010 Underground Tape & Markers LF 7,500$ 6.66 $ 49,950 RS Means - 2010 Job Conditions, Traffic Control, Utility Conflicts % 20 $ 192,801 Estimated CNB-TNW 12" Interconnect LF 5,600 $ 161 $ 900,710 Calculated 12" Along Clarkview Rd from Union Rd to Rt 207 Rd and then along Rt 207 to Little Britain Rd LF 5,600 $ 77 $ 429,016 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 6,667$ 17.48 $ 116,533 RS Means - 2010 12" Fittings EA 56$ 2,425.84 $ 135,847 RS Means - 2010 12" GV EA 7$ 4,556.76 $ 31,897 RS Means - 2010 Underground Tape & Markers LF 5,600$ 6.66 $ 37,296 RS Means - 2010 Job Conditions, Traffic Control, Utility Conflicts % 20 $ 150,118 Estimated

Direct Construction Cost Alternative 2 $ 7,908,000 Contingency 35% $ 2,767,800 General Conditions 10% $ 790,800 Escalation to Mid-Point 5% $ 395,400 Estimated Total Construction Cost $ 11,862,000 General Contractor's OH&P 10% $ 1,186,200 Market Bid Allowance 5% $ 593,100 Engineering and Construction Management 20% $ 2,372,400 Total Alternative 2 $ 16,014,000

Total Water Demand (MGD) 17 Total Added Capacity (MGD) 6 Cost per Gallon $ 2.67 Alternative 2 with Chadwick Lake Plant in Operation Existing City of Newburgh Plant to Serve as a Regional Facility Conceptual Operation and Maintenance (O&M) Cost Estimate

% of Estimated Estimated Estimated Description Cost1 Direct Cost Constr. Cost Annual O&M Source Lake Washington Plant Expansion to add 2.5 MGD 9% $ 5,850,000 $ 8,775,000 $ 766,470 Escalated2 -HDR Cost Est. Guide, Lvl 2, Avg 1-10 MGD Install City of New Windsor Existing Catskill Tap to Catskill Aqueduct 1% $ 879,000 $ 1,318,500 $ 13,185 HDR Cost Est. Guide, Pipelines & Wells CNB-TNB 12" Interconnect 1% $ 1,156,810 $ 1,735,215 $ 17,352 HDR Cost Est. Guide, Pipelines & Wells CNB-TNW 12" Interconnect 1% $ 900,710 $ 1,351,065 $ 13,511 HDR Cost Est. Guide, Pumps Operate Existing 9 mgd Pump Station at Catksill Aqueduct Tap 2.5% $ 4,500,000 $ 6,750,000 $ 168,750 Estimated 3,4,5 Pumping Energy Costs $ 663,298 See Note 5. Operate Existing 3 MGD Riley Rd Plant $ 1,190,209 Escalated2 - HDR CEG, Level 2, 1 MGD -Prorated Operate Existing 2 MGD Chadwick Lake Plant $ 1,092,347 Escalated2 - HDR CEG, Level 3, 1 MGD -Prorated Total Estimated O&M Alternative 2 $ 3,925,000

Notes: 1. O&M Cost estimated as a percentage of Total Construction Cost, per HDR 2004 Cost Estimating Guide developed for EPA Guidance Manual's Cost Estimates 2. Escalation from 2008 assumed as 3% per year. Conservative assumption based on ENR's Construction Cost Index (CCI) increment of 3.1% from 2008 to 2009, and 1.7% from 2009 to 2nd Quarter 2010 3. Pump Station Cost includes Power Connection Cost but does not include Pumping Energy Costs. Energy Costs estimated separately 4. Combined Pump Horse Power for 9 MGD PS estimated from Previous HDR Design Project (PS-227) as 290 5. Cost based on Pumping on a 24/7 basis, 365 days a year. Cost per KWh of $0.05 from to Central Hudson Gas & Electric residential rate for 2010 to 2012 Alternative 3 with Chadwick Lake Plant in Operation Joint Town of Newburgh - Town of New Windsor Plant Supplied with Hudson River Water Detailed Conceptual Cost Estimate

Description Unit Qty Unit Cost Subtotal Total Source New 6 MGD Desalination Plant w/ RO LS 1 $ 35,182,500 From HDR previous cost estimate Plant LS 1 $ 42,436,000 $ 42,436,000 Desalting Handbook, AWWA - Escalated New Intake Structure $ 2,433,737 Calculated Intake Structure with Pumps LS 1$ 2,121,800.00 $ 2,121,800.00 Desalting Handbook, AWWA - Escalated 30" Pipe LF 1,000 $ 232.51 $ 232,512.50 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 889 $ 15.46 $ 13,742.22 RS Means - 2010 30" Fittings EA 3$ 14,495 $ 36,238.59 RS Means - 2010 30" GV EA 2$ 11,392 $ 22,783.80 RS Means - 2010 Underground Tape & Markers LF 1,000 $ 6.66 $ 6,660.00 RS Means - 2010 Concentrate Disposal $ 325,892.48 Calculated 12" Pipe LF 2,500 $ 76.61 $ 191,525.00 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 2,222 $ 17.48 $ 38,844.44 RS Means - 2010 12" Fittings EA 25$ 2,426 $ 60,646.00 RS Means - 2010 12" GV EA 4$ 4,557 $ 18,227.04 RS Means - 2010 Underground Tape & Markers LF 2,500 $ 6.66 $ 16,650.00 RS Means - 2010 Discharge $ 69,830.37 Calculated 16" Pipe LF 400 $ 109.19 $ 43,676.00 RS Means - 2010 Excavation, Backfill, Bedding & Compaction CY 356 $ 15.46 $ 5,496.89 RS Means - 2010 16" Fittings EA 4$ 2,979 $ 11,917.80 RS Means - 2010 16" GV EA 1$ 6,076 $ 6,075.68 RS Means - 2010 Underground Tape & Markers LF 400 $ 6.66 $ 2,664.00 RS Means - 2010 Site Development $ 1,644,748 Calculated Clearing, Grubbing & Tree Chipping AC 5$ 17,045.63 $ 85,228.15 RS Means - 2010 Excavation to 10 ft deep CY 140,000 $ 2.16 $ 302,400.00 RS Means - 2007 - Escalated Grade, Fill & Compact - 5000' Haul CY 140,000 $ 4.32 $ 604,800.00 RS Means - 2007 - Escalated Erosion Control LS 1 $ 47,520.00 $ 47,520.00 From HDR Past Project - Escalated Soil Cement Stabilization (9% mix) SY 40,000 $ 15.12 $ 604,800.00 RS Means - 2007 - Escalated 6 MGD Pump Station from Desalt Plant to Distribution MG 6 $ 500,000 $ 3,000,000 $ 4,000,000 WM from Effl PS in Town of Newburg (at River Rd north of Susan Dr) $ 4,481,810 Calculated 12" WM from Desalt Effl. PS to CNB-TNW Interconnect Tap at River Rd LF 19,503 $ 76.61 $ 1,494,124.83 RS Means - 2010 12" WM Excavation, Backfill, Bedding & Compaction CY 26,245 $ 17.48 $ 458,768.43 RS Means - 2010 12" Fittings EA 49$ 2,426 $ 118,866.16 RS Means - 2010 12" GV EA 21$ 4,557 $ 95,691.96 RS Means - 2010 12" WM from Desalt Effl. PS to CNB-TNB Interconnect Tap at River Rd LF 10,023 $ 76.61 $ 767,862.03 RS Means - 2010 12" Fittings EA 25$ 2,426 $ 61,252.46 RS Means - 2010 12" GV EA 11$ 4,557 $ 50,124.36 RS Means - 2010 16" WM from Desalt Effl. PS to CNB-TNB Interconnect Tap at River Rd LF 3,404 $ 109.19 $ 371,682.76 RS Means - 2010 16" Fittings EA 9$ 2,979.45 $ 26,070.19 RS Means - 2010 16" GV EA 4$ 6,075.68 $ 24,302.72 RS Means - 2010 Description Unit Qty Unit Cost Subtotal Total Source 16" WM Excavation, Backfill, Bedding & Compaction CY 3,026 $ 15.46 $ 46,778.52 RS Means - 2010 Underground Tape & Markers LF 32,930 $ 6.66 $ 219,313.80 RS Means - 2010 Job Conditions, Traffic Control, Utility Conflicts % 20 $ 746,968 Estimated WM from Effl PS in Town of New Windsor (at River Rd behind Hewitt Ln) $ 3,886,310 Calculated 12" WM from Desalt Effl. PS to CNB-TNB Interconnect Tap at River Rd LF 10,443 $ 76.61 $ 800,038.23 RS Means - 2010 12" WM Excavation, Backfill, Bedding & Compaction CY 9,283 $ 17.48 $ 162,261.01 RS Means - 2011 12" Fittings EA 26$ 2,425.84 $ 63,678.30 RS Means - 2010 12" GV EA 11$ 4,556.76 $ 50,124.36 RS Means - 2010 16" WM from Desalt Effl. PS to CNB-TNW Interconnect Tap at River Rd LF 12,597 $ 109.19 $ 1,375,466.43 RS Means - 2010 16" Fittings EA 126$ 2,979.45 $ 375,410.70 RS Means - 2010 16" GV EA 14$ 6,075.68 $ 85,059.52 RS Means - 2010 16" WM Excavation, Backfill, Bedding & Compaction CY 11,197 $ 15.46 $ 173,110.77 RS Means - 2010 Underground Tape & Markers LF 23,040 $ 6.66 $ 153,446.40 RS Means - 2010 Job Conditions, Traffic Control, Utility Conflicts % 20 $ 647,719 Estimated

Direct Construction Cost Alternative 3A $ 43,664,000 Contingency 35% $ 15,282,400 General Conditions 10% $ 4,366,400 Escalation to Mid-Point 5% $ 2,183,200 Estimated Total Construction Cost $ 65,496,000 General Contractor's OH&P 10% $ 6,549,600 Market Bid Allowance 5% $ 3,274,800 Engineering and Construction Management 20% $ 13,099,200 Total Alternative 3A (Plant in Town of Newburgh) $ 88,420,000

Total Water Demand (MGD) 11 Total Additional Capacity (MGD) 6 Cost per Gallon $ 14.74

Direct Construction Cost Alternative 3B $ 43,069,000 Contingency 35% $ 15,074,150 General Conditions 10% $ 4,306,900 Escalation to Mid-Point 5% $ 2,153,450 Estimated Total Construction Cost $ 64,603,500 Contractor's O&P 10% $ 6,460,350 Market Bid Allowance 5% $ 3,230,175 Engineering and Construction Management 20% $ 12,920,700 Total Alternative 3B (Plant in Town of New Windsor) $ 87,215,000

Cost per Gallon $ 14.54 Alternative 3 with Chadwick Lake Plant in Operation Joint Town of Newburgh - Town of New Windsor Plant Supplied with Hudson River Water Conceptual Operation and Maintenance (O&M) Cost Estimate

% of Estimated Estimated Estimated Description Cost1 Direct Cost Constr. Cost Annual O&M Source New 6 MGD Desalination Plant w/ RO 8% $ 35,182,500 $ 52,773,750 $ 3,985,843 Note 2. HDR CEG Level 6, 10 MGD 6 MGD Pump Station from Desalt Plant to Distribution 3% $ 4,000,000 $ 4,600,000 $ 115,000 HDR CEG, Pipelines & Wells 3,4,5 Pumping Energy Costs $ 457,447 See Note 5 Operate Existing 3 MGD Riley Rd Plant $ 1,190,209 Escalated2 - HDR CEG, L2, 1MGD -Prorated Operate Existing 2 MGD Chadwick Lake Plant $ 1,092,347 Escalated2 - HDR CEG, L3, 1MGD -Prorated WM from Effl PS in Town of Newburg (at River Rd north of Susan Dr) 1% $ 4,481,810 $ 5,154,081 $ 51,541 HDR CEG, Pipelines & Wells

WM from Effl PS in Town of New Windsor (at River Rd behind Hewitt Ln) 1% $ 3,886,310 $ 4,857,888 $ 48,579 HDR Cost Est. Guide, Pumps

Total Estimated O&M Alternative 3A $ 6,892,000

Total Estimated O&M Alternative 3B $ 5,797,000

Notes: 1. O&M Cost estimated as a percentage of Total Construction Cost, per HDR 2004 Cost Estimating Guide developed for EPA Guidance Manual's Cost Estimates 2. Escalation from 2008 assumed as 3% per year. Conservative assumption based on ENR's Construction Cost Index (CCI) increment of 3.1% from 2008 to 2009, and 1.7% from 2009 to 2nd Quarter 2010 3. Pump Station Cost includes Power Connection Cost but does not include Pumping Energy Costs. Energy Costs estimated separately 4. Combined Pump Horse Power for 6 MGD PS estimated from Previous HDR Design Project (PS-227) as 200 5. Cost based on Pumping on a 24/7 basis, 365 days a year. Cost per KWh of $0.05 from to Central Hudson Gas & Electric residential rate for 2010 to 2012 Alternative 4 with Chadwick Lake Plant in Operation Base Case - Local Supply Detailed Conceptual Cost Estimate

Description Unit Cost Subtotal Total Source New 6 MGD Membrane Filtration Plant (Newburgh) LS 1 $ 13,650,000 Estimated Expand Existing Riley Road Plant from 3 MGD to 6 MGD LS 1 $ 7,020,000 Estimated from Previous Projects New Town of New Windsor Tap to Catskill Aqueduct $ 936,230 Calculated 16" Steel Pipe LF 350$ 273.07 $ 95,573.33 RS Means - 2010 Pipe Excavation, Backfill, Bedding & Compaction CY 311$ 15.46 $ 4,809.78 RS Means - 2010 16" Fittings EA 2$ 2,979.45 $ 5,958.90 RS Means - 2010 16" GV EA 1$ 6,075.68 $ 6,075.68 RS Means - 2010 Underground Tape & Markers LF 350 $ 6.66 $ 2,331.00 RS Means - 2010 Concrete & Installation of Outside Connection Vault CY 22$ 1,401.6 $ 31,311.0 RS Means - 2010_Mott Haven Estimate Excavation & Sheeting for Outside Connection vault CY 51$ 131.87 $ 6,726.4 RS Means - 2010_Mott Haven Estimate Temporaty By-pass Connection: plugs, pumping, 20" pipe LS 1$ 567,384.80 $ 567,384.8 Estimated & RS Means - 2010 Job conditions and Disinfection % 30 $ 216,051.3 Estimated

Direct Construction Cost Alternative 4 $ 21,606,230 Contingency 35% $ 7,562,181 General Conditions 10% $ 2,160,623 Escalation to Mid-Point 5% $ 1,080,312 Estimated Total Construction Cost $ 32,409,345 General Contractor's OH&P 10% $ 3,240,935 Market Bid Allowance 5% $ 1,620,467 Engineering and Construction Management 20% $ 6,481,869 Total Alternative 4 $ 43,753,000

Total Water Demand (MGD) 11 Total Additional Capacity (MGD) 6 Cost per Gallon $ 7.29

Total Cost Town of Newburg $ 27,641,250 Cost per Gallon (Town of Newburgh) $ 4.61

Total Cost Town of New Windsor $ 16,111,400 Cost per Gallon (Town of New Windsor) $ 5.37 Alternative 4 with Chadwick Lake Plant in Operation Base Case - Local Supply Conceptual Operation and Maintenance (O&M) Cost Estimate

% of Estimated Estimated Estimated Description Cost1 Direct Cost Constr. Cost Annual O&M Source New 6 MGD Membrane Filtration Plant (Newburgh) 8% $ 13,650,000 $ 20,475,000 $ 1,641,444 Note 2. HDR CEG, Lvl 3, Avg 1-10 MGD Expand Existing Riley Road Plant from 3 MGD to 6 MGD 13% $ 7,020,000 $ 10,530,000 $ 1,421,469 Note 2. HDR CEG, Lvl 2, Prorated 6 MGD New Town of New Windsor Tap to Catskill Aqueduct 1% $ 936,230 $ 1,404,345 $ 14,043 HDR Cost Est. Guide, Pipelines & Wells Operate Existing 2 MGD Chadwick Lake Plant $ 1,092,347 Escalated2 -HDR CEG, L3, 1 MGD-Prorated Total Estimated O&M Alternative 4 - Town of Newburgh $ 2,734,000 Total Estimated O&M Alternative 4 - Town of New Windsor $ 1,435,513 Notes: 1. O&M Cost estimated as a percentage of Total Construction Cost, per HDR 2004 Cost Estimating Guide developed for EPA Guidance Manual's Cost Estimates 2. Escalation from 2008 assumed as 3% per year. Conservative assumption based on ENR's Construction Cost Index (CCI) increment of 3.1% from 2008 to 2009, and 1.7% from 2009 to 2nd Quarter 2010 Tunnel 36" DIP WM Parallel to Catskill Aqueduct Detailed Conceptual Capital Cost Estimate

Total Water Demand (MGD) 11 Total Additional Capacity (MGD) 8 Cost per Gallon $ 3.69 Tunnel 36" DIP WM Parallel to Catskill Aqueduct Conceptual Operation and Maintenance (O&M) Cost Estimate

Total Estimated O&M Alternative 1A $ 219,000

Notes: 1. O&M Cost estimated as a percentage of Total Construction Cost, per HDR 2004 Cost Estimating Guide developed for EPA Guidance Manual's Cost Estimates. Costs inflated by 30% for NY prices. Orange County Water Authority Unit Detail Report New Windsor, New York, 12553 Prepared By: Year 2010 Quarter 3 Lina Posso Date: 17-Sep-10 NE_OC_Water_Supply HDR Design-Build, Inc

LineNumber Description Quantity Unit Total Incl. Ext. Total Incl. O&P O&P

1 LineNumber Description Quantity Unit Total Incl. Ext. Total Incl. O&P O&P

Source: HDR CEG Trans-Texas Study