DERRY — The town will renew its agreement to buy water from Manchester Water Works.
Town councilors approved a water contract renewal agreement March 25. Deputy Public Works Director Tom Carrier said the long-term agreement will insure that Derry’s water supply needs are met for the foreseeable future.
This is a renewal of an agreement made in May 1998 and set to expire on May 27.
“In January of this year, Derry informed Manchester Water Works of our intention to renew the agreement,” Carrier said. “Mr. Thomas Bowen, director of Manchester Water Works, and his staff drafted a new agreement and forwarded it to Derry for our consideration.”
As part of the Derry Municipal Water System Master Plan in 1990, Carrier said an extensive analysis was done on Derry’s water supply availability.
Officials considered alternatives to Manchester Water Works, but decided that was the most attractive water supply option for the town.
“Derry and Manchester Water Works have made long-term commitments to each other in terms of securing water supply for Derry into the future,” Carrier told councilors. “Derry currently purchases 2.9 million gallons per day of capacity in Manchester Water Works’ system and has made significant investments in water transmission pipelines between Derry and Manchester Water Works.”
In 2012, he said, the town averaged just over 1.4 million gallons a day, with a peak monthly use at 1.8 million gallons daily. He said this allows for 1.1 million gallons per day, or a 60 percent additional growth in the Derry system over the next 25 years, the term of the new water agreement.
Carrier said the new agreement is substantively the same as the current agreement. The wholesale rate has been revised from $0.595 to $0.988 per 100 cubic feet to reflect the most recent Manchester Water Works rate increase.
Derry paid Manchester Water Works $687,000 in calendar year 2012. There will be no additional costs with the new agreement.