Monday, February 22, 2010 at 7:00pm

"Little Theater" at Merrimack High School

No new benefits are proposed for 2010-2011.

This account remains relatively stable with the exception of 2 new areas added in 2009-2010.

1. Patching and Paving at $10,000.
2. $20,000 is added to this account for emergency repairs of any main lines or entrances.

(a) In-house review. This is done at the rate of $70.00/hour, with a minimum charge of $70.00 or as may be stipulated in MVD’s “Schedule of Rates”. This is done on a reimbursable basis and is offset in our revenue.

(b) If in-house review requires further review it is sent to our Engineer for recommendations and a hydraulic modeling to assure that there will be no adverse effects on our system. This cost is reimbursable to the MVD by the developer/owner/contractor. Again this projected cost and revenue are strict estimates as we do not have an extended history. The current economy has also affected this account reduction and reimbursable revenue.

• New ¾ ton truck 2010 with equipment (replacing W-27) Distribution $27,000
• Radio/antenna replacement (all stations) SCADA (2 year phasing) Treatment $16,000
• New ½ ton truck 2010-2011 with equipment (replacing W-23) Treatment $20,000

Revenues for the year ending 2006-2007 came in at $2,825,066. The revenues for this period were up by $78,116 or 3% higher than the projected revenue of $2,746,950. The 2007-2008 revenues were up by $407,487 or 15% higher than the projected revenue of $2,720,407. This reflected a record increase in water pumpage of 926,193,700 gallons. The sources of revenue are summarized below.

Underwood Engineers, Inc. conducted a “Lost Water Study” that was completed in February of 2007. The lost water or non-revenue water (NRW) is the difference between the amount of water produced or purchased versus the amount of sold or accounted for within a water distribution system. According to the American Water Works Association (AWWA) - “Across the U.S., the water industry considers a NRW of 10 to 12 percent as normal.” The 2001 state standard for NRW in the New England States was 15%. In 2005-2006 year MVD’s water production loss was 18.9%. Water loss from 2007 – 2008 actual proposed to actual was 10.6%. The District has been and will continue to determine and correct the “water loss” through ongoing remedial action. Our best estimate at this time is that our water loss has been reduced from 18.9% to between 10.6% and 13.2%.

ARTICLE 3: Shall the Merrimack Village District vote to raise and appropriate a sum of up to two million eight hundred thousand dollars ($2,800,000) for the purpose of construction of approximately 9400 LF of 16” water main on Continental Boulevard, Camp Sargent, Amherst and/or Turkey Hill Roads? Such sum to be raised by the issuance of Serial Bonds or Notes not to exceed to two million eight hundred thousand dollars ($2,800,000) under, and in compliance with, the provisions of the Municipal Finance Act (NH RSA 33) and to authorize the Board of Commissioners to issue and negotiate such bonds or notes and to determine the rate of interest thereon, and to take such other actions as may be necessary to effect the issuance, negotiation, sale and delivery of such bonds or notes as shall be in the best interests of the Merrimack Village District; to additionally participate in the State Revolving Fund (SRF) RSA 486:14 established for this purpose and/or to participate in existing economic stimulus funding (i.e., ARRA), and to allow the Board of Commissioners to expend such monies as become available from the Federal and State Governments and pass any vote relating thereto and to authorize the Board of Commissioners to take any other action or to pass any other vote relative to said purpose and financing; and to raise and appropriate the sum of seventy-nine thousand three hundred dollars ($79,300) for the purpose of 2010-2011 interest on said bond or serial notes? (2/3 ballot vote required; polls must remain open for at least one hour).

Recommended by the Board of Commissioners (5-0-0)
Reviewed by the Department of Revenue Administration

Note: It is anticipated that up to $250,000 of the funds for this project will be reimbursed by private developers. However, due to timing of the project, it is necessary that the MVD authorize the entire project to assure its completion.

Project Description

• The purpose of the project is to improve the available water supply from well sources in the south to areas of greater demand in the north of Town. Currently, hydraulic restrictions in the existing pipes cause high pressures in the area at the south end of Continental Boulevard and limit the rate of flow from the wells.
• The project will also replace smaller, older mains on Camp Sargent Road.
• The project includes up to 9,400 linear feet of 16” ductile iron water main on portions of Continental Boulevard, Camp Sargent Road, and Amherst Road. The project limits start near the intersection of Industrial Drive and Continental Boulevard extending north to the intersection of Amherst road and Turkey Hill Road.
• The project also includes new water services and hydrants along Camp Sargent Road.
• This project is needed in addition to the planned water main loop to be constructed by the developers of the Premium Outlets.

Funding

• MVD proposes to fund the project from the bond issue, the State Revolving Fund (SRF) and/or stimulus funding, as determined to be in the best interests of MVD.
• Private Party funding will be received for the portion of work along Continental Boulevard south of Industrial Drive if the Premium Outlets project moves ahead.

Rate Impacts

• The estimated rate impact of the project is a 10% rate increase.
• The impact may be reduced with private funding participation, use of SRF low interest loans, and/or contributions from reserves.

Schedule

The following schedule is anticipated (pending final permits and easements):

ARTICLE 4: Shall the Merrimack Village District vote to raise and appropriate a sum not to exceed eight hundred thirty five thousand dollars ($835,000) for the purpose of rehabilitation of Well #6, including necessary improvements at Wells 7 and 8 to facilitate a blending of the supplies? (Note, if treatment is needed, cost will be higher) Such sum to be raised by the issuance of Serial Bonds or Notes not to exceed eight hundred thirty five thousand dollars ($835,000) under, and in compliance with, the provisions of the Municipal Finance Act (NH RSA 33) and to authorize the Board of Commissioners to issue and negotiate such bonds or notes and to determine the rate of interest thereon, and to take such other actions as may be necessary to effect the issuance, negotiation, sale and delivery of such bonds or notes as shall be in the best interests of the Merrimack Village District; to additionally participate in the State Revolving Fund (SRF) RSA 486:14 established for this purpose and/or to participate in existing or future economic stimulus funding (i.e., ARRA), and to allow the Board of Commissioners to expend such monies as become available from the Federal and State Governments and pass any vote relating thereto and to authorize the Board of Commissioners to take any other action or to pass any other vote relative to said purpose and financing; and to raise and appropriate the sum of twenty-three thousand seven hundred dollars ($23,700) for the purpose of 2010-2011 interest on said bond or serial notes? (2/3 ballot vote required; polls must remain open for at least one hour).

Recommended by the Board of Commissioners (5-0-0)
Reviewed by the Department of Revenue Administration

Project Background

• MVD Well 6 is in the southern portion of Merrimack while Wells 7 and 8 are just over the border in Hollis. The wells are in relative close proximity.
• MVD Well 6 has been off line since 1988 due to low level volatile organic chemical (VOC) contamination. Concentrations found in Well 6 never exceeded, nor even came close to the maximum contaminant levels (MCL’s) for the contaminants detected. Clean up of the source of the contamination took place in the 1990’s. In recent long-term pumping and water quality testing of Well 6, no VOC’s were detected. Levels of sodium and chloride were high, presumeably due to salt treatment of roads and parking lots, at times, exceeding the secondary (aesthetic/taste related) MCL’s. Levels of iron and manganese have been, and remain, very low in Well 6.
• MVD Wells 7 and 8 have no VOC contamination and relatively low levels of sodium and chloride compared to Well 6. However, both wells have concentrations of iron and manganese that exceed the secondary MCL’s which sometimes lead to water quality problems and colored water complaints.

Project Description

The project consists of blending the discharge of Wells 6, 7 and 8 prior to entering the distribution system. Well 6 water will dilute the iron and manganese in Wells 7 and 8 while water from the latter two wells will dilute the sodium and chloride in Well 6 water. This project should avoid construction of two much more expensive treatment plants ($5 million plus) that would be required without blending the sources prior to reaching MVD customers.

The project includes a complete upgrade of the Well 6 pumping station to return this facility to regular service and improvements to the Well 7 and 8 pumping stations to facilitate the blending process.

This project will result in return of a valuable resource (Well 6) to service, and improved water quality over that currently provided by Wells 7 and 8.

Funding

• MVD proposes to fund the project from the bond issue, the State Revolving Fund (SRF) and/or stimulus funding, as determined to be in the best interests of MVD.

Rate Impacts

• The estimated rate impact of the project is a 3 to 5% rate increase.
• The impact may be reduced by use of SRF low interest loans, and/or contributions from reserves.

Schedule

The following schedule is anticipated (pending final permits and easements):

We trust this will assit you in your review of the proposed 2010-2011 budget and the bond warrant articles. As always, if you have any questions, please let us know.

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