Proposal to purchase water from Albany




NEW SCOTLAND — The town has sent an official proposal to Albany to purchase water from the city.

New Scotland has requested a maximum of 4.5 million gallons per month at $2.42 per 1,000 gallons, Supervisor Ed Clark said.

The proposed agreement is for the next 20 years, Clark said, with percentage increase built into the contract.

This is the first step in the negotiation process, town attorney Michael Mackey said.

After years of informal discussions with the Albany Water Board, and the town of Bethlehem to transmit the water, Clark said he thinks New Scotland may be able to secure this new water source by early next year.

While the first offer that New Scotland has thrown out to Albany is $2.42 per thousand gallons, water will still cost individual New Scotland residents a good bit more, because additional costs include paying Bethlehem for the transmission, and then New Scotland’s own operating expenses, Clark said.

However, the overall cost of water from Albany, which has a huge water supply, will be cheaper than purchasing the water from Bethlehem. New Scotland currently buys water from Bethlehem for four of the town’s water districts: Feura Bush, Swift Road, Heldervale, and Font Grove.

Bethlehem charges an out-of-town rate to New Scotland residents, which is twice what Bethlehem residents pay.

Councilman Scott Houghtaling said at a meeting on Thursday that some people who get water from Bethlehem in a New Scotland water district are paying $9 per thousand gallons.

Font Grove is the most expensive water district in town because there are only 17 people who belong to the district so the cost of that district is not split across the bank accounts of very many people, Clark said.

Currently each user in the Font Grove Water District has to pay for a minimum of 5,000 gallons, which costs $125; then, for every 1,000 gallons used beyond that, residents are charged $11.
"The cost factor is what is really driving us to Albany," Dempf said. Additionally, Bethlehem really does not have any additional water to sell to New Scotland, Dempf said.

If New Scotland does acquire water from Albany and a transmission agreement is formed, one of the first things the town will do is provide water to residents at the cheaper rate, Clark said.

The second objective is to provide public water to new users in areas of town with well-water problems, Clark said. But extending New Scotland’s public water system is contingent upon being able to afford to put the pipes in the ground, Clark said.

Excluding the village of Voorheesville about half of the households in New Scotland have public water.

A third objective of purchasing water from Albany and subsequently having a larger water source at an affordable rate, is to make public water available to businesses and commercial development, Clark said.

Moving forward

What has made things move forward now, after a standstill, is that Bethlehem, which has its own water problems, is now working on its water upgrades.

Bethlehem plans to replace old water lines and put in a new 24 inch water main along Route 85 through the town of New Scotland to connect Bethlehem to its reservoir, which is located within the town lines of New Scotland, Clark said.
"Bethlehem has been very cooperative," as it moves forward with its own improvements, Clark said. "We’ve been talking to them about the pipe lines," he said, and over the course of the discussion, Bethlehem officials have said that it would be "reasonable" for them to carry the water that New Scotland purchases from Albany through Bethlehem pipes to the New Scotland town line.
"They said they will agree to work out an agreement," Clark said.
"Bethlehem continues to be more than happy to come to the table to discuss this," Bethlehem Supervisor Theresa Egan has said in public session and to The Enterprise.

Clark said that now that an agreement to make an agreement for transmission is more solid, the town was confident to go forward and request a purchase contract with Albany.

The town board approved the action on Sept. 14, and the proposal was finalized and sent out on Monday, Sept. 26. He has not heard back from the water board yet, Clark said this Tuesday.

Some of the sticking points of the contract, Clark predicts, will be the price, how the metering system will work, and also Albany may want to impose a minimum gallon purchase requirement.

Councilman Houghtaling said that he would like to have a cushion on both ends so that the town won’t be purchasing more water than it can use and also not cut itself short.

Work with the DEC

Currently, the town of Bethlehem is attempting to acquire land assessments from private residents in New Scotland who own property along Route 85, in order to put its 24-inch water main in the ground.

Mike Kolceski, a consulting engineer for Bethlehem, has said that construction is planned for next spring, starting in April.

This Bethlehem main water line will simply bring water from the Vly Creek Reservoir, owned by Bethlehem, but located in New Scotland into Bethlehem, and will result in no direct benefit to New Scotland residents.

Bethlehem has, and continues to only be obligated by the State’s Department of Environmental Conservation to supply water to New Scotlanders whose property abuts the public highway, and is within 150 feet of the transmission line. These users are not a part of a New Scotland water district but instead pay user fees directly to the town of Bethlehem.

Houghtaling said that, with Bethlehem’s water main crossing through New Scotland, Bethlehem is well aware of New Scotland’s desires for a transmission agreement and water for its commercial area.
"My opinion, based on what we have out there today, they [Bethlehem] will need a new water contract," Dempf told the town board last month.

Councilmen Richard Reilly said New Scotland should be in contact with both Bethlehem and the State’s Department of Environmental Conservation now.

Dempf said that Bethlehem’s water project has more to it than just the one line and Bethlehem is applying to the DEC, which will look at Bethlehem’s entire water situation and capability.

Water committee member Robert Cook asked, what Bethlehem’s permit status was, because if Bethlehem plans to take more yield out of the reservoir it will have to apply to the DEC for the additional water supply.

Bethlehem will be taking more water out of the reservoir, but not increasing the impoundment, Dempf said.

As New Scotland negotiates with Albany for water, the town still wants to keep its supply options open.

While Bethlehem is in discussions with the DEC, New Scotland plans to actively inform the DEC of its interest so that they are considered.

More New Scotland News

The Altamont Enterprise is focused on hyper-local, high-quality journalism. We produce free election guides, curate readers' opinion pieces, and engage with important local issues. Subscriptions open full access to our work and make it possible.