New Business Item 1

NEW BUSINESS ITEM 1

St. Mary’s County Metropolitan Commission 23121 Camden Way, California, MD 20619

Serving our customers since 1964 www.metcom.org Phone: 301-737-7400 Potable Water Distribution - Wastewater Collection / Treatment FAX: 301-737-7459

MEMORANDUM

DATE: January 14, 2021

TO: Metropolitan Commission Board Members

FROM: Patty Stiegman, Chief Financial Officer R. Christopher Beaver, Legal Counsel

VIA: George A. Erichsen, P.E. Executive Director

RE: Bond Resolution 2021-01: Maryland Water Quality Financing Administration (MWQFA) Loans - Resolution authorizing the issuance and sale of general obligation installment bonds for the St. Clements Shores Water System, Phase 2 Project

Historical / Background Information. MWQFA loans are borrowed at the time of award. Construction contracts are conditionally awarded, contingent upon approval of the loan(s) by the Maryland Department of the Environment and the Maryland Board of Public Works. Typically, the loan periods for water and sewer projects can be 20 years or 30 years. Portions of projects, such as design and land acquisition, are often forward funded prior to loan closings. The authority to borrow monies for the completion of capital projects is accomplished through Resolutions by both the Metropolitan Commission (MetCom) and the Commissioners of St. Mary’s County (CSMC). This project was included in prior approved Capital Improvement Budget submissions and the combined debt capacity calculations, as prepared by the County and presented to the CSMC.

Project Information. This project is the final planned phase of the project that will replace the St. Clements Shores Water System, which was originally built in the 1950s as a stand-alone water system. MetCom later took over operation of this system, which serves 228 homes. Phase 2 will include the installation of approximately 2,900 feet of 12” diameter water main and approximately 19,000 feet of 8” diameter water main to replace the existing lines. Associated valves, hydrants, and appurtenances will also be installed. Phase 1 was previously approved and funded by MWQFA in the amount of $3,368,474, and resulted in the replacement of approximately 10,400 linear feet of water line and associated appurtenances. Operational Acceptance was issued on 5/03/19; Final Acceptance was issued on 4/27/20.

Summary / Related information. Phases 1 and 2 of the project were approved as a part of the Capital Improvement Budget and Plan. Following approval by the MetCom Board on 12/13/201, The CSMC was presented with and approved the loan application for funding on 01/15/19. The MWQFA application was submitted by the MetCom Executive Director to the MWQFA for Federal FY19/State FY21 Capital Project Financial Assistance on 1/21/19. On 5/17/19, MWQFA identified the project as eligible for financing from the Drinking Water State Revolving Fund (DWSRF) Intended Use Plan. The project bid is within the approved budget amount. Design for both phases was awarded in the amount of $490,980.

Timeline (past, present and future). The project was advertised for bid on 7/07/20 and a pre-bid conference was held on 7/28/20. Bids were opened on 8/25/20 and a Conditional Award was made on 10/08/20. The estimated completion time for construction is 360 calendar days. Construction Notice to Proceed will be issued upon approval by the Maryland Board of Public Works, which is underway; and the closing of the loan is expected to occur within the next several months.

Previous Board actions. The Board has taken the following actions on the St. Clements Shores Water Replacement Project. The project was originally created as one project, but was separated into two phases. The

original estimate for the project was $5,498,000, which was later updated during the capital budgeting process to $7,290,293, based on engineers’ phasing estimates.

Prior Intent Resolutions # 2015-01, 2016-02 & 2019-02 Completed prior

Capital Improvement Budget, Phase 1: $ 3,602,859 Resolution 2017-01, Approval of MWQFA Loan for Phase 1: $ 3,368,474 Award of Construction, Phase 1: $ 2,720,570 11/20/2017

Capital Improvement Budget, Phase 2: $ 3,687,434 FY2020 MetCom Approval of MWQFA Application, Phase 2 $ 3,687,434 December 13, 2018 CSMC Approval of MWQFA Application, Phase 2 $ 3,687,434 January 15, 2019

Conditional Award of Construction, Phase 2: $ 1,908,750 October 8, 2020

ST. MARY’S COUNTY METROPOLITAN COMMISSION RESOLUTION NO. 2021-21

A RESOLUTION OF THE ST. MARY'S COUNTY METROPOLITAN COMMISSION (the “Borrower”), authorizing the issuance and sale of its general obligation installment bond: the St. Mary's County Metropolitan Commission Drinking Water Bond, Series 2021A in the maximum principal amount not to exceed $3,687,434 (the “Series 2021A Bond” also referred to as “Drinking Water Bond” and the “Bond”), pursuant to the authority of the Maryland Water Quality Financing Administration Act (codified as Sections 9-1601 to 9-1622, inclusive, of the Environment Article of the Annotated Code of Maryland (2014 Replacement Volume and 2020 Supplement) and Sections 113-1 to 113-30, inclusive, of the Code of Public Local Laws of St. Mary's County (1978 Edition, as amended, being Article 19 of the Code of Public Local Laws of Maryland, as enacted by Chapter 369 of the Laws of Maryland of 1978, as amended), the Bond is designated the “St. Mary's County Metropolitan Commission Drinking Water Bond, Series 2021A” (or such other designation for the Bond as the officers of the Borrower may agree upon); providing that the payment of the principal of and interest on the Bond shall be guaranteed by the full faith and credit of the Commissioners of St. Mary's County; authorizing the execution of a loan agreement between the Borrower and the Maryland Water Quality Financing Administration (the “Administration”); prescribing the form and tenor of the Bond and the terms and conditions for the issuance and sale thereof at private sale to the Administration; providing for the prompt payment of the maturing principal of and interest on the Bond; and generally relating to the issuance, sale and delivery of the Bond.

RECITALS

Title XIV of the Public Health Service Act (the “Safe Drinking Water Act”) authorizes the United States Environmental Protection Agency (the “EPA”) to award grants to qualifying States to establish and capitalize State Revolving Funds (“SRFs”) for the purpose of providing loans and certain other forms of financial assistance to finance, among other things, the construction of publicly-owned and privately- owned water supply systems, including any structure, channel or appurtenance used to prepare water for use or to deliver water to a consumer.

As contemplated by the Safe Drinking Water Act, the General Assembly of Maryland at its 1988 session enacted the Maryland Water Quality Financing Administration Act, codified at Sections 9-1601 through 9-1622, inclusive, of the Environment Article of the Annotated Code of Maryland (2014 Replacement Volume and 2020 Supplement) (the “Act”), establishing the Administration and establishing the Maryland Drinking Water Revolving Loan Fund (the “Drinking Water Fund”), which Drinking Water Fund is to be maintained and administered by the Administration. The Act authorizes the Administration, among other things, to make loans from the Drinking Water Fund to a “local government” (as defined in

1 the Act) for the purpose of financing all or a portion of the cost of a “water supply system” (as defined in the Act). The Borrower is a “local government” within the meaning of the Act.

The Borrower has applied to the Administration for a loan from the Drinking Water Fund to assist in the financing of certain projects which constitute a “water supply system”, all within the meaning of the Act. As contemplated by the Act, the Administration and the Borrower will enter into a loan agreement (the “Loan Agreement”) to effect and evidence the loan. The Borrower has determined that it will issue one bond, which constitutes a “loan obligation” within the meaning of the Act, to evidence its payment obligation under the Loan Agreement.

BE IT RESOLVED BY THE ST. MARY'S COUNTY METROPOLITAN COMMISSION:

Section 1. Pursuant to the authority of the Act, and Sections 113-1 to 113-30, inclusive, of the Code of Public Local Laws of St. Mary's County (1978 Edition, as amended, being Article 19 of the Code of Public Local Laws of Maryland), as enacted by Chapter 369 of the Laws of Maryland of 1978, as amended (the “Public Local Law”), the Borrower, a body politic and corporate of the State of Maryland, hereby determines to borrow money and incur indebtedness for the public purpose of financing or refinancing improvements to the water supply system and related architectural, financial, legal, planning and engineering expenses permitted under the Safe Drinking Water Act, as more fully described in Exhibit A (the “Project”). The portion of the Project being funded by the Drinking Water Fund constitutes a “water supply system” within the meaning of the Act.

As contemplated by the Act, such borrowing and indebtedness shall be made and incurred in accordance with the provisions of the Loan Agreement. The Loan Agreement for the Project is hereby approved in substantially the form set forth in Exhibit B attached hereto as a part hereof, with such insertions, omissions or variations as may be deemed necessary, appropriate, helpful or desirable and approved by the officers executing the same (their execution of the Loan Agreement to constitute conclusive evidence of such approval). The Borrower hereby approves the form of and authorizes the execution and delivery of the Loan Agreement by the Chairman of the Borrower in substantially the form set forth in Exhibit B, including all covenants and conditions set forth therein.

Section 2. To evidence the payment obligation of the Borrower under the Loan Agreement, the Borrower, acting pursuant to the authority of the Act and the Public Local Law, hereby determines to issue and sell, upon the full faith and credit of the Commissioners of St. Mary's County, a general

2 obligation installment bond, in the maximum principal amount not to exceed, and to be known as the St. Mary's County Metropolitan Commission Drinking Water Bond, Series 2021A in the maximum principal amount not to exceed $3,687,434.00, referred to as the “Drinking Water Bond” or the “Bond”) (or any other bond designation approved by the officers executing the Bond on behalf of the Borrower). If the Bond shall be issued in 2022 or a later year, such Bond shall include “Series 2022” or such later year in the designation for such Bond in lieu of “Series 2021.”

The Bond shall be dated the date of delivery and shall be issued in the form of one fully registered installment bond, without coupons attached. Except as described below, the Bond shall bear interest at a rate not to exceed 5.00%. The first payment of principal on the Bond shall be paid on the date set forth in the Bond, and subsequent installments of principal shall be payable annually each February 1 thereafter until the principal on the Bond is fully paid, except that the final installment of the entire indebtedness evidenced by the Bond, if not sooner paid, shall be due and payable on the maturity date set forth in the Bond, and except that prepayments may be made as provided in the Loan Agreement relating to the Bond. Interest due on the unpaid principal amount advanced under the Loan Agreement shall accrue on the basis of a 30-day month, 360-day year from the date of the respective advances of such principal amount, and the initial interest payment due on the Bond shall be paid on the date set forth in the Loan Agreement, and semiannually thereafter on the 1st day of August and February in each year until the principal amount of the Bond has been fully paid.

Under specified circumstances, the Bond shall accrue interest at a “Default Rate” as further described (and defined) in the Loan Agreement. The Default Rate shall not exceed the average of the Bond Buyer 11-Bond Index for the month preceding the month in which the loan related to the Bond is closed.

Section 3. The Bond shall be executed in the name of the Borrower and on its behalf by the Chairman of the Borrower. The corporate seal of the Borrower shall be affixed to the Bond and attested by the signature of the Secretary of the Borrower. The principal of and interest on the Bond shall be paid by the Borrower by electronic funds transfer, check or draft mailed (by depositing such check or draft, correctly addressed and postage prepaid, in the United States mail before the payment date) to the registered owner at its address as it appears on the books kept for that purpose at the office of the Borrower in California, Maryland. In the event any official whose signature appears on the Bond ceases to be an official prior to the delivery of the Bond, or shall have become such official after the date of this

Resolution, the Bond shall, nevertheless, be the valid and legally binding obligation of the Borrower in accordance with its terms.

Section 4. Except as provided hereinafter or in a Resolution or Resolutions of the Borrower adopted prior to the issuance of the Bond, the Bond shall be issued in substantially the following registered installment bond form. Appropriate variations and insertions shall be made to provide dates, numbers and amounts, and modifications not altering its substance may be made by the Chairman of the Borrower. All of the covenants contained in the following form of Drinking Water Bond are hereby adopted by the Borrower as and for the form of obligation to be incurred by the Borrower with respect to the Drinking Water Bond, and the covenants and conditions contained therein are hereby made binding upon the Borrower, including the promise to pay therein contained:

(Form of Drinking Water Bond)

$______

REGISTERED

UNITED STATES OF AMERICA STATE OF MARYLAND ST. MARY'S COUNTY METROPOLITAN COMMISSION DRINKING WATER BOND, SERIES 202[1][A]

Dated ______, 202_

PAYMENTS OF PRINCIPAL AND INTEREST ON THIS BOND ARE MADE BY CHECK, DRAFT OR ELECTRONIC FUNDS TRANSFER TO THE REGISTERED OWNER AND IT CANNOT BE DETERMINED FROM THE FACE OF THIS BOND WHETHER ALL OR ANY PART OF THE PRINCIPAL OF OR INTEREST ON THIS BOND HAS BEEN PAID.

REGISTERED OWNER: Maryland Water Quality Financing Administration

St. Mary's County Metropolitan Commission, a body politic and corporate of the State of Maryland (the “Borrower”), hereby acknowledges itself obligated to pay to the Registered Owner shown above, the principal amount of $______(the “Maximum Principal Amount”) or so much thereof as shall have been advanced from time to time under the terms of the Loan Agreement dated as of ______, 202_ (the “Loan Agreement”) by and between the Borrower and the Maryland Water Quality Financing Administration (the “Administration”), plus interest on the unpaid principal advanced under the terms of the Loan Agreement at the rate of ___% per annum.

The principal advanced under the Loan Agreement shall be paid in installments on the dates and in the amounts as set forth in the following schedule, as such schedule may be amended in accordance with the terms hereof: Principal Principal Due Amount Due Amount

If the Administration determines at any time to reduce the maximum amount of the Loan Commitment (as defined in the Loan Agreement) in accordance with [Section 3.08] of the Loan Agreement, the Maximum Principal Amount shall be reduced accordingly and the Maximum Principal Amount as so reduced shall be amortized in accordance with [Section 3.08] of the Loan Agreement. The Administration shall deliver, and the Borrower shall acknowledge in writing, a certificate setting forth

5 such reamortized payment schedule, which shall be attached hereto and shall replace and supersede for all purposes the foregoing payment schedule. Any such reduction shall not affect the obligation of the Borrower to pay the principal of and interest on this bond as and when the same shall become due.

Notwithstanding the foregoing, all outstanding unpaid principal amounts advanced under the Loan Agreement, if not previously due hereunder, shall be due on that date which is [30] years after the date of completion of the Project (as defined in the Loan Agreement), as certified by the Borrower to the Administration pursuant to [Section 2.02(d)] of the Loan Agreement.

Interest due on the unpaid principal amounts advanced under the Loan Agreement shall accrue on the basis of a 30-day month, 360-day year from the date of the respective advances of such principal amount, and shall be paid on [August 1, 2021] and semiannually thereafter on the 1st day of February and August in each year until the principal amount hereof has been paid.

This bond is subject to (i) a late charge for any payment of principal or interest that is received later than the tenth day following its due date and (ii) interest on overdue installments of principal and (to the extent permitted by law) interest at a rate equal to the Default Rate (as defined in the Loan Agreement) in accordance with [Section 3.04(b)] of the Loan Agreement. Interest at the Default Rate shall accrue on the basis of a 30-day month, 360-day year.

This bond is subject to prepayment only in accordance with [Section 3.10] of the Loan Agreement.

Both the principal of and interest on this bond will be paid to the registered owner in lawful money of the United States of America, at the time of payment, and will be paid by electronic funds transfer, or by check or draft mailed (by depositing such check or draft, correctly addressed and postage prepaid, in the United States mail before the payment date) to the registered owner at such address as the registered owner may designate from time to time by a notice in writing delivered to the Secretary of the Borrower.

This bond is issued pursuant to and in full conformity with the provisions of the Maryland Water Quality Financing Administration Act (codified as Sections 9-1601 to 9-1622, inclusive, of the Environment Article of the Annotated Code of Maryland (2014 Replacement Volume and 2020 Supplement), Sections 113-1 to 113-30, inclusive of the Code of Public Local Laws of St. Mary's County (1978 Edition, as amended, being Article 19 of the Code of Public Local Laws of Maryland), as enacted by Chapter 369 of the Laws of Maryland of 1978, as amended, and by virtue of due proceedings had and taken by the Borrower, particularly Resolution No. 2021-____ adopted by the Borrower on February ___, 2021 and by virtue of due proceedings had and taken by the Commissioners of St. Mary’s County (the “County”), particularly Resolution No. R-2021.__ adopted by the County on ______, 2021 (collectively, the “Resolution”). This bond, together with the Loan Agreement, evidences the Loan (as defined in the Loan Agreement) to the Borrower from the Administration. In accordance with the Loan Agreement, the principal amount of the Loan, being the amount denominated as principal under this bond, is subject to reduction or adjustment by the Administration in accordance with the Loan Agreement.

The Borrower has established a dedicated source of revenues described in the Loan Agreement. The Borrower does hereby covenant and agree to pay the principal of and interest on this bond on the dates and in the manner prescribed herein. The full faith and credit and unlimited taxing power of the County are hereby irrevocably pledged to the prompt payment of the principal of and interest on this bond according to its terms, and the County does hereby covenant and agree to pay the principal of and interest on this bond at the dates and in the manner prescribed herein, all in accordance with the

6 guarantee of the County endorsed hereon. In each year in which this bond is outstanding and unpaid, the County shall levy and collect ad valorem taxes upon all property subject to assessment for unlimited taxation by the County in rate and amount sufficient to provide an amount, if any be necessary, which, together with any other amounts lawfully available and applied for the purpose, shall be sufficient to provide for the payment of the principal of and interest on this bond when it becomes due and payable.

This bond is transferable only after the first principal payment date as set forth above or the date upon which the Maximum Principal Amount has been borrowed, whichever is earlier, upon the books of the Borrower at the office of the Secretary of the Borrower by the registered owner hereof in person or by his attorney duly authorized in writing, upon surrender hereof, together with a written instrument of transfer satisfactory to the Chairman of the Borrower duly executed by the registered owner or his duly authorized attorney. The Borrower shall, within a reasonable time, issue in the name of the transferee a new registered bond or bonds, in such denominations as the Borrower shall by resolution approve, in an aggregate principal amount equal to the unpaid principal amount of the bond or bonds surrendered and with the same maturities and interest rate. If more than one bond is issued upon any such transfer, the installment of principal and interest to be paid on each such bond on each payment date shall be equal to the product of the following formula: the total installment due on each payment date multiplied by a fraction, the numerator of which shall be the principal amount of such bond and the denominator of which shall be the aggregate principal amount of bonds then outstanding and unpaid. The new bond or bonds shall be delivered to the transferee only after payment of any taxes on and any shipping or insurance expenses relating to such transfer. The Borrower may deem and treat the party in whose name this bond is registered as the absolute owner hereof for the purpose of receiving payment of or on account of the principal hereof and interest due hereon and for all other purposes.

It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State of Maryland and the Resolution to exist, to have happened or to have been performed precedent to or in the issuance of this bond, exist, have happened and have been performed, and that the issuance of this bond, together with all other indebtedness of the Borrower, is within every debt and other limit prescribed by said Constitution or statutes.

IN WITNESS WHEREOF, this bond has been executed by the manual signature of the Chairman of the Borrower and the seal of the Borrower has been affixed hereto, attested by the manual signature of the Borrower, all as of the _____ day of ______, 2021.

(SEAL)

ST. MARY'S COUNTY METROPOLITAN COMMISSION

ATTEST:

______By:______Secretary Chairman

(Form of Endorsement)

COMMISSIONERS OF ST. MARY'S COUNTY

Commissioners of St. Mary's County, a body politic and corporate and political subdivision organized and existing under the Constitution and laws of the State of Maryland, hereby endorses, ratifies, confirms and adopts this Bond and the respective obligations extended thereby. The payment of interest when due and the principal at maturity is guaranteed by Commissioners of St. Mary's County. The full faith and credit and unlimited taxing power of Commissioners of St. Mary's County are hereby unconditionally and irrevocably pledged to such payment. In each year in which a Bond is outstanding and unpaid, the Commissioners for St. Mary's County shall levy and collect ad valorem taxes upon all property subject to assessment for unlimited taxation by Commissioners of St. Mary's County in rate and amount sufficient to provide an amount, if any be necessary, which, together with any other amounts lawfully available and applied for the purpose, shall be sufficient to provide for the payment of the principal of and interest on the Bond when it becomes due and payable. This endorsement is made pursuant to the authority of and in compliance with Sections 113-1 through 113-30, inclusive, of the Code of Public Local Laws of St. Mary's County (1978 Edition, as amended, being Article 19 of the Code of Public Local Laws of Maryland), as enacted by Chapter 369 of the Laws of Maryland of 1978, as amended.

IN WITNESS WHEREOF, Commissioners of St. Mary's County has caused these presents to be executed in its name by the manual signature of the Commissioner President and it has caused its corporate seal to be imprinted hereon and attested by the manual signature of the County Administrator of St. Mary's County, all as of the ____ day of ______, 2021.

COMMISSIONERS OF ST. MARY’S COUNTY

By:______Commissioner President

ATTEST:

______County Administrator

Section 5. The Bond shall be sold to the Administration at a private (negotiated) sale, without public bidding, in accordance with the provisions of the Act. The Chairman of the Borrower is authorized and directed to enter into such agreements with the Administration as he shall deem to be in the best interests of the Borrower in order to accomplish the public purposes of this Resolution.

Section 6. The Chairman of the Borrower is expressly authorized and empowered to take any and all action necessary, appropriate, helpful or desirable to complete and close the delivery of the Bond. The Chairman of the Borrower is expressly authorized to make such changes or modifications in the form adopted herein or in the payment dates of the Bond as may be necessary or appropriate and to establish the final designation of the Bond, the final principal amount of the Bond and the annual principal payments due on the Bond.

Section 7. The Chairman of the Borrower is hereby designated to receive payment on behalf of the Borrower of the proceeds of the sale of the Bond. Such proceeds shall be used and applied by the Borrower exclusively and solely for the public purposes described in Section 1 of this Resolution. If the proceeds received from the sale of the Bond exceed the amount needed for such public purposes, the unexpended excess shall be applied as soon as may be practicable to the prepayment of the Bond as provided for in Section 2 of this Resolution, unless a supplemental resolution is passed and approved by the Borrower to provide for the expenditure of that excess for some other valid purpose authorized by the Act and approved by the Administration.

Section 8. (a) The Borrower does hereby covenant and agree to pay the principal of and interest on the Bond on the dates and in the manner prescribed therein. The Borrower has established a dedicated source of revenues for the payment of the principal of and interest on the Bond. The water supply system revenues are intended to be the dedicated sources of revenues with respect to the Bond required by Section 9-1605.1(d) of the Act. If required by the Administration dedicated revenues may also include the wastewater system revenues of the Borrower. Such revenues may be referred to by similar, but not exact references, on any applicable Exhibits to the Loan Agreement. Pursuant to a resolution of the Commissioners of St. Mary's County (the

“County”) to be adopted prior to the issuance of the Bond, the full faith and credit and unlimited taxing power of the County shall be irrevocably pledged to the prompt payment of the principal of and interest on the Bond according to its terms, and the County shall covenant and agree to pay the principal of and

9 interest on the Bond at the dates and in the manner prescribed in the Bond, all in accordance with the guarantee of the County endorsed on the Bond. In each year in which the Bond is outstanding and unpaid, the County shall levy and collect ad valorem taxes upon all property subject to assessment for unlimited taxation by the County in rate and amount sufficient to provide an amount, if any be necessary, which, together with any other amounts lawfully available and applied for the purpose, shall be sufficient to provide for the payment of the principal of and interest on the Bond when it becomes due and payable.

(b) As contemplated and authorized by Section 9-1606(d) of the Act, the Borrower hereby pledges, assigns and grants a security interest to the Administration, its successors in trust and assigns, all right, title and interest of the Borrower in and to money that the Borrower is entitled to receive from the State of Maryland, to secure payment of the principal of, premium, if any, and interest on the Bond and any other local obligations issued and to be issued from time to time by the Borrower under the Administration’s SRFs loan programs. Section 9. (a) The Chairman of the Borrower and the Director of the Borrower shall be the officials of the Borrower responsible for the issuance of the Bond within the meaning of Section

1.148-2 of the Arbitrage Regulations (defined below). The Chairman and the Director of the Borrower shall also be the officials of the Borrower responsible for the execution and delivery on the date of the issuance of the Bond of a certificate of the Borrower (a “Tax and Section 148 Certificate”) that complies with the requirements of Section 148 of the Internal Revenue Code of 1986, as amended (“Section 148”), and the applicable regulations thereunder (the “Arbitrage Regulations”), and such officials are hereby authorized and directed to execute and deliver a Tax and Section 148 Certificate to counsel rendering an opinion on the validity of the Bond on the date of issuance of the Bond.

(b) The Borrower shall set forth in the Tax and Section 148 Certificate its reasonable expectations as to relevant facts, estimates and circumstances relating to the use of the proceeds of the Bond or of any monies, securities or other obligations on deposit to the credit of any account of the Borrower which may be deemed to be proceeds of the Bond pursuant to Section 148 or the

Arbitrage Regulations (the “Bond Proceeds”). The Borrower covenants that the facts, estimates and circumstances set forth in the Tax and Section 148 Certificate will be based on the Borrower's reasonable

10 expectations on the date of the issuance of the Bond and will be, to the best of the certifying officials' knowledge, true and correct as of the relevant dates.

(c) The Borrower covenants and agrees with the registered owner or owners of the Bond that it will not make, or (to the extent that it exercises control or direction) permit to be made, any use of the Bond Proceeds that would cause the Bond to be an “arbitrage bond” within the meaning of

Section 148 and the Arbitrage Regulations. The Borrower further covenants that it will comply with

Section 148 and the Arbitrage Regulations which are applicable to the Bond on the date of issuance thereof and which may subsequently be made applicable thereto as long as the Bond remains outstanding and unpaid. The Chairman of the Borrower and the Director of the Borrower are hereby authorized and directed to prepare or cause to be prepared and to execute any certification, opinion or other document, including, without limitation, a Tax and Section 148 Certificate, which may be required to assure that the

Bond will not be deemed to be an “arbitrage bond” within the meaning of Section 148 and the Arbitrage

Regulations. All officers, employees and agents of the Borrower are hereby authorized and directed to take such actions, and to provide such certifications of facts and estimates regarding the amount and use of the proceeds of the Bond as may be necessary or appropriate from time to time to comply with, or to evidence the Borrower's compliance with, the covenants set forth in this Section.

(d) The Chairman of the Borrower may make such covenants or agreements in connection with the issuance of the Bond as he shall deem advisable in order to assure the registered owner or owners of the Bond that interest thereon shall be and remain excludable from gross income for federal income tax purposes, and such covenants or agreements shall be binding on the Borrower so long as the observance by the Borrower of any such covenants or agreements is necessary in connection with the maintenance of the exclusion of the interest on the Bond from gross income for federal income tax purposes. The foregoing covenants and agreements may include such covenants or agreements on behalf of the Borrower regarding compliance with the provisions of the Internal Revenue Code of 1986, as amended, as the Chairman of the Borrower shall deem advisable in order to assure the registered owner or owners of the Bond that the interest thereon shall be and remain excludable from gross income for federal

11 income tax purposes, including (without limitation) covenants or agreements relating to the investment of

Bond Proceeds, the payment of certain earnings resulting from such investment to the United States, limitations on the times within which, and the purpose for which Bond Proceeds may be expended, or the use of specified procedures for accounting for and segregating Bond Proceeds. Such covenants and agreements may be set forth in a Tax and Section 148 Certificate.

(e) The Borrower declares that the Borrower intends to reimburse itself from proceeds of the Bond any expenditures for costs of the Project made by the Borrower prior to the issuance of the Bond and that such declaration in this Resolution constitutes the Borrower’s “official intent” under

Arbitrage Regulation 1.150-2 (the “Reimbursement Regulation”). The Borrower intends that the costs of the Project constitute “original expenditures” for the purposes of the Reimbursement Regulation. The

Borrower hereby covenants and agrees that (a) except as to “preliminary expenditures” or “de minimis” amounts (as both such terms are used within the meaning of, and subject to the limitations of, the

Reimbursement Regulation): (i) this Resolution is being adopted not later than sixty (60) days after the payment of the original expenditures intended to be reimbursed, and (ii) a reimbursement allocation will be made not later than eighteen (18) months after the later of the date the original expenditure is paid or the dates the Project is placed in service or abandoned, but in no event more than three (3) years after the original expenditure is paid, and (b) the original expenditures that are the subject of these Resolutions to be reimbursed as provided herein (including without limitation any “de minimis amounts” and

“preliminary expenditures”) will be capital expenditures or other expenditures permitted to be reimbursed by the

Reimbursement Regulation

(f) The foregoing paragraphs (a) through (e) shall be applicable in the event that the Bond is issued with the expectation that interest on the Bond shall be excludable from gross income for federal income tax purposes.

[Signatures on Following Page]

Section 10. The Borrower hereby covenants and agrees to pay all administrative fees and expenses charged by the Administration under the Loan Agreement.

Section 11. This Resolution shall be effective from the date of its adoption.

Read and adopted this _____ day of ______, 2021.

ST. MARY'S COUNTY METROPOLITAN COMMISSION

ATTEST:

______By:______Secretary Joseph I. Russell, Chairperson

______Rudolph K. Fairfax Jr., Vice Chairperson

______Roy H. Alvey, Commissioner

______Gerald E. Meyerman, Commissioner

______Dale Antosh, Commissioner

______Robert A. Russell, Commissioner

______Keith Dugan, Commissioner

Approved as to Legal Sufficiency:

______R. Christopher Beaver, Esq.

Exhibit A to Resolution 2021-21

The Drinking Water Project

Series 2021A This project is the second and final planned phase of the project that will replace the St. Clements Shores Water System, which was originally built in the 1950’s as a stand-alone water system. The St. Mary’s County Metropolitan Commission later took over operation of this system, which currently serves 228 homes. Phase 2 will include the installation of approximately 10,400 linear feet of water main to replace the existing lines. Additionally, the project will include the installation of associated valves, hydrants, and appurtenances. Phase 1 of the project was previously approved and funded by MWQFA in the amount of $3,180,033 and resulted in the replacement of approximately 10,765 linear feet of water line and associated appurtenances.

Exhibit B to Resolution 2021-21

Form Loan Agreement for the Drinking Water Bond

COMMISSIONERS OF ST. MARY'S COUNTY RESOLUTION NO. R-2021.___

APPROVAL OF RESOLUTION FOR ST. MARY'S COUNTY METROPOLITAN COMMISSION

RESOLUTION of the Commissioners of St. Mary's County (the “County”) concurring in the passage and adoption of the resolution heretofore passed by the St. Mary's County Metropolitan Commission (the “Commission”) authorizing the issuance by the Commission of its St. Mary's County Metropolitan Commission Drinking Water Bond, Series 2021A in the maximum principal amount not to exceed [$3,687,434] (the “Bond”), to the Maryland Water Quality Financing Administration (the “Administration”) under the authority of Sections 113-1 to 113-30, inclusive, of the Code of Public Local Laws of St. Mary's County (1978 Edition, as amended, being Article 19 of the Code of Public Local Laws of Maryland) as enacted by Chapter 369 of the Laws of Maryland of 1978, as amended (the “Act”); said Bond to be issued on the full faith and credit of the County; covenanting to impose ad valorem taxes in rate and amount sufficient to pay the principal of and interest when due on the Bond if such principal and interest is not paid from other moneys legally available for such purposes, all as more particularly provided in the aforesaid resolution passed by the Commission; and pledging the full faith and credit and unlimited taxing power of the County to the payment of the principal of and interest on the Bond.

RECITALS

The Commission plans to issue its St. Mary's County Metropolitan Commission Drinking Water Bond, Series 2021A in the maximum principal amount not to exceed [$3,687,434] in order to finance and/or refinance a portion of the costs and related costs of the design and construction of Phase 2 of the St. Clements Shores Water System Replacement, which project is more particularly described in a resolution heretofore passed by the Commission on [February ___], 2021 (the “Commission Resolution”).

Sections 113-1 to 113-30, inclusive, of the Code of Public Local Laws of St. Mary's County (1978 Edition, as amended, being Article 19 of the Code of Public Local Laws of Maryland), as enacted by Chapter 369 of the Laws of Maryland of 1978, as amended (the “Act”), authorizes the issuance of the Bonds for the purpose set forth in the Act. The Act provides that the bonds shall be issued upon the full faith and credit of the County, and further provides the form of guarantee to be executed on such bond by the County.

The County concurs in the judgment of the Commission as set forth in the Commission Resolution and deems it desirable to provide formally for the authority of the Commission to issue and sell the Bond to the Administration all as authorized in the Act.

NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSIONERS OF ST. MARY'S COUNTY, that: SECTION 1. The County concurs in the findings and judgment of the Commission as set forth by the terms of the Commission Resolution, entitled as follows:

2021A in the maximum principal amount not to exceed [$3,687,434] (the “Series 2021A Bond” also referred to as “Drinking Water Bond” and the “Bond”), pursuant to the authority of the Maryland Water Quality Financing Administration Act (codified as Sections 9-1601 to 9-1622, inclusive, of the Environment Article of the Annotated Code of Maryland (2014 Replacement Volume and [2017] Supplement) and Sections 113-1 to 113-30, inclusive, of the Code of Public Local Laws of St. Mary's County (1978 Edition, as amended, being Article 19 of the Code of Public Local Laws of Maryland, as enacted by Chapter 369 of the Laws of Maryland of 1978, as amended), the Bond is designated the “St. Mary's County Metropolitan Commission Drinking Water Bond, Series 2021A” (or such other designation for the Bond as the officers of the Borrower may agree upon); providing that the payment of the principal of and interest on the Bond shall be guaranteed by the full faith and credit of the Commissioners of St. Mary's County; authorizing the execution of a loan agreement between the Borrower and the Maryland Water Quality Financing Administration (the “Administration”); prescribing the form and tenor of the Bond and the terms and conditions for the issuance and sale thereof at private sale to the Administration; providing for the prompt payment of the maturing principal of and interest on the Bond; and generally relating to the issuance, sale and delivery of the Bond.

The County accordingly approves the issuance and sale of the fully registered general obligation installment bond: the “St. Mary's County Metropolitan Commission Drinking Water Bond, Series 2021A” in the maximum principal amount not to exceed [$3,687,434], (the “Bond”) (or such other designation for such Bond as the officers of the Commission may agree upon or are otherwise required by the Administration), upon the terms and conditions set forth in the Commission Resolution, all of said terms and conditions being hereby adopted and approved by the County.

SECTION 2. The full faith and credit and unlimited taxing power of the County are hereby unconditionally and irrevocably pledged to the prompt payment of the principal of and interest on the Bond according to its terms, and the County hereby covenants and agrees to pay the principal of and interest on the Bond at the dates and in the manner prescribed in the Bond, all in accordance with the guarantee of the County endorsed on the Bond. Pursuant to the authority of and in compliance with Sections 113-1 through 113-30, inclusive, of the Code of Public Local Laws of St. Mary's County (1978 Edition, as amended, being Article 19 of the Code of Public Local Laws of Maryland), as enacted by Chapter 369 of the Laws of Maryland of 1978, as amended, in each year in which the Bond is outstanding and unpaid, the County shall levy and collect ad valorem taxes upon all property subject to assessment for unlimited taxation by the County in rate and amount sufficient to provide an amount, if any be necessary, which, together with any other amounts lawfully available and applied for the purpose, shall be sufficient to provide for the payment of the principal of and interest on the Bonds when they become due and payable.

SECTION 3. The form of endorsement that evidences the guarantee as to payment of principal and interest on the Bond by the County shall be as follows:

(Form of Endorsement)

COMMISSIONERS OF ST. MARY'S COUNTY

COMMISSIONERS OF ST. MARY’S COUNTY

By:______Commissioner President

ATTEST:

______County Administrator

Such endorsement shall be signed and executed on the Bond by the manual or facsimile signature of the Commissioner President of the County; the corporate seal of the County shall be affixed thereto and attested by the manual or facsimile signature of the County Administrator of St. Mary's County.

SECTION 4. This Resolution shall take effect on the date set forth below.

Adopted: ______, 2021

Effective: ______, 2021

COMMISSIONERS OF ST. MARY’S COUNTY

[SEAL] ______James R. Guy, Commissioner President

______Eric Colvin, Commissioner

______Michael L. Hewitt, Commissioner

______ATTEST: John E. O’Connor, Commissioner

______Rebecca Bolton Bridgett Todd B. Morgan, Commissioner County Administrator

APPROVED AS TO FORM AND LEGAL SUFFICIENCY:

______Cheryl Guth Bond Counsel

11623466

FISCAL MOTION

RESOLUTION 2021-01 MD WATER QUALITY FINANCE ADMINISTRATION DRINKING WATER BOND FOR ST. CLEMENT SHORES WATER SYSTEM, PHASE 2

MOVE that the Board approve and adopt Resolution 2021-01, authorizing the issuance and sale of general obligation installment bonds, pursuant to the MDE Maryland Water Quality Financing Administration Act: Water Drinking Water Bond, Series 2021A.

FURTHER, MOVE to authorize the Board Chairperson to sign all documents related to the closing and administration of said Bond and/or related loan transaction. This indebtedness is in furtherance of the duly approved FY20 Capital Improvement Budget and the rates related thereto.

NEW BUSINESS ITEM 2

St. Mary’s County Metropolitan Commission 23121 Camden Way, California, MD 20619

Serving our customers since 1964 www.metcom.org Phone: 301-737-7400 Potable Water Distribution - Wastewater Collection / Treatment FAX: 301-737-7459

MEMORANDUM

DATE: January 26, 2021

TO: Metropolitan Commission Board Members

FROM: Edward F. Hogan Chief of Facilities and Operations

VIA: George A. Erichsen, P.E. Executive Director

RE: Maintenance Crane Truck Purchase

Historical / Background information. The Maintenance staff responds to grinder pump service calls and a variety of service calls at our wastewater facilities. These calls come in around the clock, 365 days a year. With this in mind, one can easily see how the service truck assigned to grinder pump repairs has had the highest annual mileage of all Commission owned vehicles. For historical reference, the previous grinder pump service trucks all were retired with high mileage. Truck #575, was retired after 4 years of service in 2013 with 238,000 miles; truck #607 was also retired after 4 years with over 191,000 miles. Currently, the 2018 grinder pump service truck has 130,000 miles. This truck is equipped with the necessary tools, equipment and spare parts needed to perform on-site grinder pump repairs. Staff responds to nearly 960 grinder pump service calls annually (based on calendar year data), and the grinder pump service area ranges over the entire county.

The maintenance department currently has three (3) existing crane trucks; one for grinder pumps, one small truck and one larger truck for wastewater stations. Purchasing a maintenance truck with a crane to be used in conjunction with the existing trucks, as well as being utilized for other maintenance duties as needed (such as pulling wastewater pumps, piping, controls and other related equipment). The additional truck will also allow staff flexibility and establish continuity by having a back-up vehicle to assist with grinder pump service.

The Capital Expenditures portion of the approved Fiscal Year 2021 Capital Improvement Budget includes $170,000 to purchase this vehicle. A copy of the Capital Improvement Budget sheet is attached for your reference.

Summary / Related information. In previous years, staff has investigated leasing options for maintenance vehicles; because these vehicles are used in the wastewater industry (with a high probability of contamination), their resale value is minimal compared to similar vehicles used in general construction; therefore, leasing was not an economical solution. Staff also researched the use of a smaller and less-expensive vehicle; however, in order to accomplish the on-site service work efficiently and effectively, a large truck is needed to carry the crane apparatus, tools and other equipment.

Staff developed specifications for a replacement truck chassis; the requested vehicle was to be a minimum 19,500 pounds GVW (gross vehicle weight), four - wheel drive, crew cab chassis with a utility body and a hydraulic crane with a 5000 pound lift capacity. Invitation to Bid (ITB), Bid Number: 21-08-F, Maintenance Truck with Crane was advertised on eMaryland Marketplace Advantage under public solicitations on December 1, 2020. Three bids were received and opened on January 12, 2021. A copy of the Bid Tabulation is attached for your reference.

All bids were within budget. Staff is requesting Board approval of contract 21-08-F to purchase the Maintenance Truck with Crane from Lindsay Ford, LLC of Wheaton, Maryland, in the amount of $139,300, as submitted in their Bid dated December 21, 2020. Timeline (past, present and future). As noted earlier, the rate of mileage on various maintenance vehicles is significant. The grinder pump truck specifically accumulates a high proportion of mileage as it is required for duty all of the time. The purchase of an additional maintenance truck with crane will allow better flexibility and the ability to distribute the mileage and workload to a number of vehicles. Pending Board approval, the new chassis is expected to be delivered in approximately 6 months and place into service immediately. The new truck will be placed in the fleet maintenance program.

Previous Board actions. This capital expenditure was approved as part of the Fiscal Year 2021 Capital Improvement Budget.

Attachments

CAPITAL IMPROVEMENT BUDGET and PROGRAM CSMC Approved May 19, 2020 SMCMC Approved May 28, 2020 FISCAL YEAR 2021

PROJECT TITLE PROJ. NO. PROJECT CLASSIFICATION Grinder Pump TruckSM2111 Sewer Upgrade/Expansion

DESCRIPTION: Ford Super Duty Crew Cab F-550 19,500 GVW chassis or equal. The truck shall include an eleven foot utility body, a hydraulic crane, and towing package.

PLANNING JUSTIFICATION: This truck will be used for grinder/chopper pump maintenance. The acquisition is in accordance with the MetCom Vehicle Replacement Program.

LOCATION: Various

Prior Budget Five Year Capital Program Total APPROPRIATION PHASE Approval FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Project

ADMINISTRATION (5%) $5,000 $0 $0 $0 $0 $0 $5,000 PLANNING/DESIGN (10%) $0 $0 $0 $0 $0 $0 $0 LAND ACQUISITION $0 $0 $0 $0 $0 $0 $0 VEHICLE COST $150,000 $0 $0 $0 $0 $0 $150,000 INSPECTION (10%) $0 $0 $0 $0 $0 $0 $0 CONTINGENCIES (10%) $15,000 $0 $0 $0 $0 $0 $15,000 ESCALATION Base FY 2021 $0 $0 $0 $0 $0 $0 $0 TOTAL COSTS $0 $170,000 $0 $0 $0 $0 $0 $170,000

Total Prior Budget Five Year Capital Program Balance to FUNDING SOURCE Project Approval FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Complete MDE/DHCD LOAN $170,000 $170,000 MDE LOAD FUNDS $0 DHCD LOAN $0 BONDS $0 STATE GRANT $0 COUNTY FUNDS $0 METCOM FUNDS $0 DIRECT CHRGS - SYS IMPR CHG $0 DIRECT CHRGS - CAP CONTR CHG $0 TOTAL FUNDS $170,000 $0 $170,000 $0 $0 $0 $0 $0 $0

Total Total FUNDING ASSIGNMENT Project % Project $

SERVICE AREA EXPANSION 0% $0 FACILITIES EXPANSION 0% $0 REHAB/REPLACEMENT 100% $170,000

TOTAL 100% $170,000

I:\CAPITAL PROJECTS\FY2021 CIB\CIB Sheets FY2021.xlsm FY2021 CIB Sheet as of 6/16/2020 Printed (1/27/2021)

FACILITIES MOTION

MAINTENANCE CRANE TRUCK

MOVE that the Commission accept and award the procurement of a new truck chassis to Lindsay Ford LLC of Wheaton, Maryland for total price of $139,300.00, as submitted in their bid dated December 21, 2021.

FURTHER, MOVE that staff be authorized and directed to sign all documentation relating to this Contract, including but not limited to all approved change orders.

NEW BUSINESS ITEM 3

St. Mary’s County Metropolitan Commission 23121 Camden Way, California, MD 20619

Serving our customers since 1964 Phone: 301-737-7400 www.metcom.org Potable Water Distribution - Wastewater Collection / Treatment FAX: 301-737-7459

MEMORANDUM

DATE: January 21, 2021

TO: Metropolitan Commission Board Members

FROM: Edward Hogan Chief of Facilities and Operations

VIA: George A. Erichsen, P.E. Executive Director

RE: Cured in Place Pipeline (CIPP) Sewer Relining Services

Historical / Background information. The Metropolitan Commission utilizes a contractor, AM Liner East, Inc., to provide relining services to the sanitary sewer lines. MetCom’s gravity sewer mains are constructed of various materials, such as transite, clay, iron, reinforced concrete and PVC (poly vinyl chloride). With the exception of the PVC pipe, most of these materials deteriorate over time and are subject to biogenic corrosion from hydrogen sulfide, commonly referred to as “sewer gas”. This corrosion can significantly reduce the strength of the pipe, leading to failure and collapse. In addition, these gravity sewer lines can crack, leading to root intrusion and a buildup of debris, which can lead to sewer backups or reduced capacity.

The Capital Improvement Budget includes a recurring yearly Inflow and Infiltration (I&I) Sewer Replacement, Rehabilitation and Upgrade Project (SM2106), which funds the replacement and rehabilitation of sewer lines prioritized by the I&I inspection process. Since 2013, approximately 22,000 linear feet of sewer mains in MetCom’s sanitary sewer systems have been rehabilitated using the CIPP (cured-in-place pipe) process.

Summary / Related information. Since 2013, MetCom has utilized the Howard County, Maryland Sewer Rehabilitation Contract, Contract Number 4400003386 for CIPP sewer main rehabilitation. This Contract includes pricing per linear foot for inspection, cleaning, preparation and relining of the pipes. This is a competitively bid Contract that permits the extension, with authorization of the Contractor, to other public bodies and agencies in the United States. Relining prices are based on the diameter of the pipe. This Contract also includes pricing for re-establishing service connections. A copy of the current Contract pricing, which is valid through June 30, 2021, is attached for your reference.

Cured-in-place pipe (CIPP) pipe lining is one of several methods used to repair existing pipelines that do not require excavation of existing pipes. CIPP is a jointless, seamless, pipe-within-a-pipe, with the capability to repair pipes ranging in diameter from 4 – 110 inches, without reducing capacity. Lining the pipes is less expensive and more efficient than traditional open cut replacement methods. The CIPP process uses a felt-like sleeve impregnated with resin-saturated tube, which is pulled through the pipeline, inflated to fit the diameter of the pipe, then cured using steam. There is a possibility of residual chemical odors during the process. Styrene is a major ingredient of the curing process. Vapors, if noticed, will dissipate quickly once the process is complete. Any complaints will be addressed on a case by case basis. Once cured, the contractor re-establishes the service connections using a robotic saw.

The area for rehabilitation this fiscal year is the Great Mills area, along Maryland Route 246 and Forest Run Drive. See aerial GIS map for specific area.

Staff is requesting Board approval for a purchase order issued to AM Liner East, Inc. in the amount not-to-exceed $125,000, based on the Contract pricing terms and conditions, to rehabilitate approximately 1,300 linear feet of 8” sewer gravity interceptor. A copy of this Proposal is also attached for your reference. Actual footage relined will be field determined and based on segment footage and the amount of cleaning required. With your approval, a purchase order will be issued for a “not to exceed” budgeted amount.

Photo 1: GIS map showing areas to be relined in Great Mills. Area includes approximately 1300’ of asbestos cement pipe and vitrified clay gravity sewer pipe

Timeline (past, present and future). Beginning in 2013, MetCom has utilized this Contract to provide CIPP services for the I&I Sewer Replacement, Rehabilitation and Upgrade projects. Since this process is far more economical than open-trench replacement of sewer mains, it is anticipated that MetCom will continue to use this technology for upgrading sewer mains unless and until a better and more economical technology is developed. In order to maintain the sanitary sewer systems and to prevent new sources of inflow and infiltration and sanitary sewer overflows this project is slated as an annual project in the Capital Improvement Budget and Plan.

Project # (Fiscal Year) Budget Expenditures Balance Remaining SM2106 2021 $236,940.00 $ 216,798.00 $143,095.89 SM2006 2020 $231,220.00 $ 202,986.20 $36,935.80 SM1906 2019 $225,500.00 $ 0 $225,500.00 SM1806 2018 $220,000.00 $ 305,426.40 $0

(Note: SM1906 Budget $225,500.00 – all expensed in fiscal year 2020; SM2006 Budget $231,220.00 - $194,284.20 was expensed in fiscal year 2020 and remaining balance of $36,935.80; SM2106 Budget $236,940.00 - $93,844.11 was expensed in fiscal year 2021 and remaining balance of $143,095.89)

Previous Board Actions. Each Fiscal Year, the Board has historically approved the expenditure of the budget amount to perform a variety of sewer system rehabilitation.

Attachments CAPITAL IMPROVEMENT BUDGET and PROGRAM CSMC Approved May 19, 2020 SMCMC Approved May 28, 2020 FISCAL YEAR 2021

PROJECT TITLE PROJ. NO. PROJECT CLASSIFICATION Inflow & Infiltration Sewer Replacement, Rehabilitation and UpgradeSM2106 Sewer Rehabilitation PROGRAM DESCRIPTION: Ongoing programmatic projects to: spot replace, rehabilitate and reline sanitary sewers; pump station wet well rehabilitation (cleaning and parging); interceptor cleaning and obstruction removal (jet rodding); and sewer main CCTV inspection services. Project includes adding a mascerator at the South Essex Pump Station to prevent debris from damaging system components and to facilitate the breakdown of high volumes of material that causes extensive maintenance. Work is typically completed in the summer during low flow peak periods.

PLANNING JUSTIFICATION: Comprehensive Plan 7.6.1.B.iii.a - Provide planned sewer service - Replacement, rehabilitation and upgrades of aging infrastructure to minimize inflow & infiltration (I&I). Estimated costs plus a 2.5% escalation per year.

LOCATION: Various Election Districts, Various Sanitary Districts

Budget Five Year Capital Program Total APPROPRIATION PHASE FY20 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Project

ADMINISTRATION (5%) $9,200 $9,200 $9,200 $9,200 $9,200 $9,200 $9,200 $64,400 PLANNING/DESIGN $0 $0 $0 $0 $0 $0 $0 $0 LAND ACQUISITION $0 $0 $0 $0 $0 $0 $0 $0 CONSTRUCTION $185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $185,000 $1,295,000 INSPECTION (5%) $9,200 $9,200 $9,200 $9,200 $9,200 $9,200 $9,200 $64,400 CONTINGENCIES (10%) $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $16,600 $116,200 ESCALATION (2.5%) $11,220 $16,940 $22,880 $28,820 $35,200 $41,580 $47,960 $204,600 TOTAL COSTS $231,220 $236,940 $242,880 $248,820 $255,200 $261,580 $267,960 $1,744,600

Total Budget Five Year Capital Program Balance to FUNDING SOURCE Project FY20 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Complete $0 REVOLVING LOAN FUNDS $0 DHCD LOAN $1,476,640 $231,220 $236,940 $242,880 $248,820 $255,200 $261,580 BONDS $0 STATE GRANT $0 COUNTY FUNDS $0 METCOM FUNDS $267,960 $267,960 DIRECT CHRGS - SYS IMPR CHG DIRECT CHRGS - CAP CONTR CHG TOTAL FUNDS $1,744,600 $231,220 $236,940 $242,880 $248,820 $255,200 $261,580 $267,960 $0

Total Total FUNDING ASSIGNMENT Project % Project $

SERVICE AREA EXPANSION 0% $0 FACILITIES EXPANSION 0% $0 REHAB/REPLACEMENT 100% $1,744,600

TOTAL 100% $1,744,600

I:\CAPITAL PROJECTS\FY2021 CIB\CIB Sheets FY2021.xlsm FY2021 CIB Sheet as of 12/30/2019 Printed (6/9/2020) Howard County, Maryland Page: 1 / 11 OFFICE OF PURCHASING PREVIEW Contract Number: 4400003386 6751 Columbia Gateway Drive, Suite 226 Columbia, MD 21046 (410) 313-6370 Tax Exemption No. 30001219 Service Contract Contract Number: 4400003386 Vendor Number: 1100307 Date: 08/04/2017 Contract Term: 07/31/2017 to 06/30/2021 AM-LINER EAST, INC. Header Target: $9,000,000.00 601 JACK ENDERS BOULEVARD Ceiling Value: 16,576,893.75 Over 5 Years BERRYVILLE VA 22611 Buyer: Michael V. Decker, CPPB USA Telephone: 410-313-6375 Fax Number: 410-313-6388 Email: [email protected]

Delivery Terms: Free On Board Destination Payment Terms: Net Due Within 30 Days

Contract text: Invitation for Bid No. 2017-63 and Agreement CA 014-2017, On-Call Sewer Rehabilitation. This is a multiple award contract and represents one of three awarded contracts.

Performance and Payment Bond No. 106703213

Contract Change No. 4, 04/06/2020. This contract change is for the purpose of exercising the fourth of 5 one-year renewal options for the period of 07/01/2020 to 06/30/2021. All other terms and conditions remain unchanged.

All invoices shall reflect the Contract Number, release Purchase Order Number, and the contract Line Item Numbers.

The vendor must maintain, in full force and current, the insurance coverage required under the terms and conditions of this contract while this contract is in effect, including any renewal terms.

This contract contains an EBO subcontracting goal. Based on the EBO Schedule of Participation submitted to the County, the subcontracting goal on this contract is 10%. You are required to make a genuine good faith effort to meet the subcontracting goal. In accordance with EBO Program Manual Sec. VI(g), the County reserves the right to undertake periodic reviews of your records to determine compliance.

The Ceiling Value is representative of multiple contract terms and does not represent the value of one year's services.

Vendor Contact: Mel Willett, AM-Liner East, Inc., 540-955-9671, [email protected] Agency Contact: Silver Chai, Department of Public Works, 410-313-6121, [email protected] ______Item NIGP Code Description Unit Price ______Howard County, Maryland Page: 2 / 11 Contract Number: 4400003386 OFFICE OF PURCHASING 6751 Columbia Gateway Drive, Suite 501 Columbia, MD 21046 (410) 313-6370 Tax Exemption No. 30001219

______Item NIGP Code Description Unit Price ______

1 91381 Sewer Mobilization Price(Contract/Bid) 1 EA 15,000.00 USD Material Text: Manhole Television Inspection

2 91381 Sewer CCTV Inspection, 6-12" Price(Contract/Bid) 1 LFT 1.65 USD Material Text: Sewer Main CCTV Inspection, 6"-12"

3 91381 Sewer CCTV Inspection, 14-24" Price(Contract/Bid) 1 LFT 2.35 USD Material Text: Sewer Main CCTV Inspection, 14"-24"

4 91381 Sewer CCTV Inspection, 27-48" Price(Contract/Bid) 1 LFT 6.95 USD Material Text: Sewer Main CCTV Inspection, 27"-48"

5 91381 Sewer Cleaning, Heavy/Specialty, 6-12" Price(Contract/Bid) 1 LFT 0.80 USD Material Text: 6"-12" Heavy/Specialty Sewer Cleaning

6 91381 Sewer Cleaning, Heavy/Specialty, 14-24" Price(Contract/Bid) 1 LFT 2.15 USD Material Text: 14"-24" Heavy/Specialty Sewer Cleaning

7 91381 Sewer Cleaning, Heavy/Specialty, 27-48"

______Howard County, Maryland Page: 3 / 11 Contract Number: 4400003386 OFFICE OF PURCHASING 6751 Columbia Gateway Drive, Suite 501 Columbia, MD 21046 (410) 313-6370 Tax Exemption No. 30001219

______Item NIGP Code Description Unit Price ______Price(Contract/Bid) 1 LFT 16.05 USD Material Text: 27"-48" Heavy/Specialty Sewer Cleaning

8 91381 Cntingnt Sewage Bypass Pump, 1.1-2.0 MGD Price(Contract/Bid) 1 DAY 802.50 USD Material Text: Contingent Sewage Bypass Pumping 1.1-2.0 MGD

9 91381 Cntingnt Sewage Bypass Pump, 2.1-5.0 MGD Price(Contract/Bid) 1 DAY 2,568.00 USD Material Text: Contingent Sewage Bypass Pumping, 2.1-5.0 MGD

10 91381 6" CIPP Liner Install Manhole to Manhole Price(Contract/Bid) 1 LFT 30.00 USD Material Text: 6" CIPP Liner Installation Manhole to Manhole

11 91381 8" CIPP Liner Install Manhole to Manhole Price(Contract/Bid) 1 LFT 35.00 USD Material Text: 8" CIPP Liner Installation Manhole to Manhole

12 91381 10 CIPP Liner Install Manhole to Manhole Price(Contract/Bid) 1 LFT 37.00 USD Material Text: 10" CIPP Liner Installation Manhole to Manhole

13 91381 12" CIPP Liner Install Manhole to Manhol ______Howard County, Maryland Page: 4 / 11 Contract Number: 4400003386 OFFICE OF PURCHASING 6751 Columbia Gateway Drive, Suite 501 Columbia, MD 21046 (410) 313-6370 Tax Exemption No. 30001219

______Item NIGP Code Description Unit Price ______Price(Contract/Bid) 1 LFT 44.00 USD Material Text: 12" CIPP Liner Installation Manhole to Manhole

14 91381 14-24" CIPP Liner Install Manhole-Manhol Price(Contract/Bid) 1 LFT 81.60 USD Material Text: 14"-24" CIPP Liner Installation Manhole to Manhole

15 91381 27-48" CIPP Liner Install Manhole-Manhol Price(Contract/Bid) 1 LFT 210.00 USD Material Text: 27"-48" CIPP Liner Installation Manhole to Manhole

16 91381 6" UV-CIPP Liner Install Manhole-Manhole Price(Contract/Bid) 1 LFT 36.00 USD Material Text: 6" UV-CIPP Liner Installation Manhole to Manhole

17 91381 8" UV-CIPP Liner Install Manhole-Manhole Price(Contract/Bid) 1 LFT 38.40 USD Material Text: 8" UV-CIPP Liner Installation Manhole to Manhole

18 91381 10" UV-CIPP Liner Install Manhole-Manhol Price(Contract/Bid) 1 LFT 40.80 USD Material Text: 10" UV-CIPP Liner Installation Manhole to Manhole

19 91381 12" UV-CIPP Liner Install Manhole-Manhol ______Howard County, Maryland Page: 5 / 11 Contract Number: 4400003386 OFFICE OF PURCHASING 6751 Columbia Gateway Drive, Suite 501 Columbia, MD 21046 (410) 313-6370 Tax Exemption No. 30001219

______Item NIGP Code Description Unit Price ______Price(Contract/Bid) 1 LFT 52.00 USD Material Text: 12" UV-CIPP Liner Installation Manhole to Manhole

20 91381 14-24" UV-CIPP Liner Install Manhole-Man Price(Contract/Bid) 1 LFT 127.00 USD Material Text: 14"-24" UV-CIPP Liner Installation Manhole to Manhole

21 91381 27-48" UV-CIPP Liner Install Manhole-Man Price(Contract/Bid) 1 LFT 279.00 USD Material Text: 27"-48" UV-CIPP Liner Installation Manhole to Manhole

22 91381 Re-establish Connection Laterals Price(Contract/Bid) 1 EA 68.50 USD Material Text: Re-establish Connection Laterals

23 91381 6-12" Sewer Trenchless Point Repair Price(Contract/Bid) 1 EA 2,033.00 USD Material Text: 6"-12" Sewer Main Contingent Trenchless Point Repair

24 91381 14-24" Sewer Trenchless Point Repair Price(Contract/Bid) 1 EA 2,675.00 USD Material Text: 14"-24" Sewer Main Contingent Trenchless Point Repair

25 91381 27-48" Sewer Trenchless Point Repair Price(Contract/Bid) 1 EA 4,932.00 USD Material Text: 27"-48" Sewer Main Contingent Trenchless Point Repair

______Howard County, Maryland Page: 6 / 11 Contract Number: 4400003386 OFFICE OF PURCHASING 6751 Columbia Gateway Drive, Suite 501 Columbia, MD 21046 (410) 313-6370 Tax Exemption No. 30001219

______Item NIGP Code Description Unit Price ______26 91381 Manhole Television Inspection Price(Contract/Bid) 1 EA 10.70 USD Material Text: Manhole Television Inspection

27 91381 Manhole Rehab-Leak Proof Price(Contract/Bid) 1 EA 262.15 USD Material Text: Manhole Rehab-Leak Proof

28 91381 Furnish & Install Manhole Step, In Place Price(Contract/Bid) 1 EA 47.05 USD Material Text: Furnish and Install Manhole Steps, Complete In Place.

29 91381 4-6" Srvc Connect & Seal 5' into Lateral Price(Contract/Bid) 1 EA 2,467.50 USD Material Text: 4"-6" Service Connection and Seal 5' into Lateral

30 91381 4-6" Srvc Connect & Seal over 5' Lateral Price(Contract/Bid) 1 LFT 90.95 USD Material Text: 4"-6" Service Connection and Seal Over 5' into Lateral

31 91381 CCTV and Cleaning of Lateral Price(Contract/Bid) 1 LFT 10.00 USD Material Text: CCTV and Cleaning of Lateral

32 91381 Class1A Excavate refill w/crusher stone Price(Contract/Bid) 1 YD3 60.00 USD Material Text: Class 1A excavation and refill with crusher run stone

______Howard County, Maryland Page: 7 / 11 Contract Number: 4400003386 OFFICE OF PURCHASING 6751 Columbia Gateway Drive, Suite 501 Columbia, MD 21046 (410) 313-6370 Tax Exemption No. 30001219

______Item NIGP Code Description Unit Price ______33 91381 Crusher run aggregate-maintain traffic Price(Contract/Bid) 1 TON 35.00 USD Material Text: Crusher run aggregate for maintenance of traffic

34 91381 Bituminous concrete-maintenance traffic Price(Contract/Bid) 1 TON 120.00 USD Material Text: Bituminous concrete for maintenance of traffic

35 91381 Mix#3 concrete-curbs, sidewalks, steps Price(Contract/Bid) 1 YD3 325.00 USD Material Text: Mix no. 3 concrete for curbs, sidewalks and steps

36 91381 Mix#3 concrete-misc drainage structures Price(Contract/Bid) 1 YD3 475.00 USD Material Text: Mix no. 3 concrete for miscellaneous drainage structures

37 91381 Borrow excavation Price(Contract/Bid) 1 YD3 44.00 USD Material Text: Borrow excavation

38 91381 Class 3 excavation Price(Contract/Bid) 1 YD3 23.00 USD Material Text: Class 3 excavation

39 91381 Select backfill Price(Contract/Bid) 1 YD3 47.00 USD Material Text: Select backfill ______Howard County, Maryland Page: 8 / 11 Contract Number: 4400003386 OFFICE OF PURCHASING 6751 Columbia Gateway Drive, Suite 501 Columbia, MD 21046 (410) 313-6370 Tax Exemption No. 30001219

______Item NIGP Code Description Unit Price ______

40 91381 Sheeting/Shoring left-in-place by order Price(Contract/Bid) 1 EA 1,200.00 USD Material Text: Sheeting and shoring left-in-place by order of the engineer

41 91381 Calcium chloride (dust control) Price(Contract/Bid) 1 TON 575.00 USD Material Text: Calcium chloride (dust control)

42 91381 Mix no1 concrete Price(Contract/Bid) 1 YD3 375.00 USD Material Text: Mix no. 1 concrete

43 91381 Test pit excavation-non paved areas Price(Contract/Bid) 1 YD3 85.00 USD Material Text: Test pit excavation-non paved areas

44 91381 Test pit excavation-paved-nonstate roads Price(Contract/Bid) 1 YD3 156.00 USD Material Text: Test pit excavation-paved-non state roads

45 91381 Test pit excavation-paved-arterial/state Price(Contract/Bid) 1 YD3 225.00 USD Material Text: Test pit excavation-paved-arterial and state roads

46 91381 Patch exist pave w/bituminous concrete Price(Contract/Bid) 1 TON 125.00 USD Material Text: ______Howard County, Maryland Page: 9 / 11 Contract Number: 4400003386 OFFICE OF PURCHASING 6751 Columbia Gateway Drive, Suite 501 Columbia, MD 21046 (410) 313-6370 Tax Exemption No. 30001219

______Item NIGP Code Description Unit Price ______Patching existing pavement with bituminous concrete

47 91381 Patch exist pave w/Portland cement concr Price(Contract/Bid) 1 YD3 250.00 USD Material Text: Patching existing pavement with Portland cement concrete

48 91381 Silt fence Price(Contract/Bid) 1 LFT 4.00 USD Material Text: Silt fence

49 91381 Super silt fence Price(Contract/Bid) 1 LFT 10.00 USD Material Text: Super silt fence

50 91381 Straw bale dikes Price(Contract/Bid) 1 LFT 5.00 USD Material Text: Straw bale dikes

51 91381 Stone outlet sediment trap Price(Contract/Bid) 1 LFT 22.00 USD Material Text: Stone outlet sediment trap

52 91381 Temporary seeding and mulching Price(Contract/Bid) 1 YD2 0.60 USD Material Text: Temporary seeding and mulching ______

TERMS AND CONDITIONS APPLICABLE TO CONTRACTS

1. This is notice that the Contract referenced above has been awarded to you based on the bid or proposal you submitted. All terms, conditions and specifications of the solicitation, when the result of a solicitation, will apply to all orders. Howard County, Maryland Page: 10 / 11 Contract Number: 4400003386 OFFICE OF PURCHASING 6751 Columbia Gateway Drive, Suite 501 Columbia, MD 21046 (410) 313-6370 Tax Exemption No. 30001219

2. Any County agency authorized to purchase from this Contract must issue a release Purchase Order and reference the Contract number and line number for each of the goods and/or services on the Contract. 3. This is not an order to ship goods or begin services. A release Purchase Order must be issued before you are authorized to ship goods or begin services. 4. Changes in goods to be furnished or services to be performed are not permitted unless approved by the Office of Purchasing prior to goods being shipped or services being performed. Prior approval of the Office of Purchasing is also required before goods or services can be added or deleted. 5. The Contractor must supply actual goods and services ordered at the Contract price. 6. Contractors must maintain, in full force and current, the insurance coverage required under the terms and conditions of this Contract while this Contract is in effect, including any renewals thereof. 7. The County is exempt from State and Federal Excise Taxes. Maryland Sales and Use Tax Exemption Certificate No. 30001219. 8. Invoices for release Purchase Orders against this Contract must include: a. Contractor’s name; b. Address; c. Federal tax identification number; d. Contract number (the first two digits are 44XXXXXXXX) and Contract Line number (shown under each item description as 44XXXXXXXXX/X – the last digit is the Contract Line number); e. Purchase Order number (the first digit is 2XXXXXXXXX); f. Unit price and extended price (the unit price must match a Contract Line on the Contract); and g. Description of goods provided and/or services performed as show on this Contract. 9. Termination a. Termination for Convenience: The County may terminate this Contract, in whole or in part, whenever the County determines that such termination is in the best interest of the County, without showing cause, upon giving at least 30 days written notice to the Contractor. The County shall pay all reasonable costs incurred by the Contractor up to the date of termination. However, in no event shall the Contractor be paid an amount which exceeds the price bid for the work performed or goods delivered. The Contractor shall not be reimbursed for any profits which may have been anticipated but which have not been earned up to the date of termination. b. Termination for Default: When the Contractor has not performed or has unsatisfactorily performed one or more material terms of the Contract, the County may terminate the Contract for default. Upon termination for default, payment may be withheld at the discretion of the County. Failure on the part of a Contractor to fulfill the Contractual obligations of this Contract shall be considered just cause for termination of the Contract. If the damages exceed the undisbursed sums available for compensation, the County shall not be obligated to make any further disbursements hereunder. The Contractor will be paid for work satisfactorily performed prior to termination less any excess costs incurred by the County in reprocuring and completing the work or obtaining the goods. 10. Remedies for Default a. The County shall have the right upon the happening of any default, without providing notice to the Contractor: i. In addition to other available rights and remedies, to terminate the Contract immediately, in whole or in part; ii. To suspend the Contractor’s authority to receive any undisbursed funds; and/or iii. To proceed at any time or from time to time to protect and enforce all rights and remedies available to the County, by suit or any other appropriate proceedings, whether for specific performance of any covenant, term or condition set forth in this Contract, or for damages or other relief, or proceed to take any action authorized or permitted under applicable law or regulations. b. Upon termination of this Contract for default, the County may elect to pay the Contractor for services provided and/or goods delivered up to the date of termination, less the amount of damages caused by the default. If the damages exceed the undisbursed sums available for compensation, the County shall not be obligated to make any further disbursements hereunder. 11. Remedies Cumulative and Concurrent No remedy herein conferred upon or reserved to the County is intended to be exclusive of any other remedies provided for in this Contract, and each and every such remedy shall be cumulative, and shall be in addition to every other remedy given hereunder, or under this Contract, or now or hereafter existing at law or in equity or by statute. Every right, power and remedy given to the County shall be Howard County, Maryland Page: 11 / 11 Contract Number: 4400003386 OFFICE OF PURCHASING 6751 Columbia Gateway Drive, Suite 501 Columbia, MD 21046 (410) 313-6370 Tax Exemption No. 30001219

concurrent and may be pursued separately, successively or together against the Contractor, and every right, power and remedy given to the County may be exercised from time to time as often as may be deemed expedient by the County.

Buyer Authorized Signature 601 Jack Enders Blvd Berryville, VA 22611 Phone 540-955-9671 Fax 540-955-2872 email: [email protected] Website: www.amlinereast.com January12, 2021

Dave Selvidge Inflow& InfiltrationTechnician St Mary's County Metropolitan Commission 43990 Commerce Ave Hollywood, MD 20636 [email protected]:

RE: Great Mills Road Sanitary Sewer Main Relining by the Cured-In-Place Pipe Method Howard County, MDOn-Call Contract Prices

Dear Sir,

AM-Liner East, Inc. is pleased to provide you with our proposal for the cured-in-place pipelining for the above referencedproject to reline existing 8" and 10" diameter sanitary sewer lines using the informationprovided by you and American Water Military Services.

Pricine::

• SEE ATTACHED BID SCHEDULE $93,291.70 Total Price Duration: • 1 Week

Payment: Theprices quoted herein shall be good if this proposal is accepted within 90 days of the date hereof. Thereafter, prices are subject to change. Payment shall be made to AM-Liner East, Inc. thirty(30) days fromthe date of the invoice; unpaid balances will accrue interest at the rate of 1-1/2% per month. AM-Liner reserves the right to discontinue services if invoices are not promptly paid as agreed. If the Prime Contractor/Owner/Client elects to accept AM-Liner East's proposal then both parties expressly agree that this proposal letter will be fullyincorporated into the Contract or Subcontract Agreement. In the event of a conflictbetween any other provision in the Contract or Subcontract Agreement, the scope and intent of this Proposal Letter shall govern.

Site Conditions and Access: AM-Liner East Inc. will require legal right of way access and physical access to both ends of each pipe segment for equipment and personnel to perform all aspects of CIPP operation. Manholeaccess on both ends of each pipe segment must be provided forCIPP installation. If at any time AM-Liner East discovers any condition that existed but was not discovered due to no faultof AM-Liner East that prevents the installation of CIPP by normal methods, AM-Liner East reserves the right to modifythis Proposal Letter and any terms or conditions herein.

Material Specifications: If awarded the work the product Specificationsand Procedures will be promptly submitted as required including Design Calculations indicating the liner thickness sealed by our ProfessionalEngineer, Mr. Richard Cornelius

Page 11

-K:eep-your-city moving;-- Berryville, VA I Capitol Heights, MD I Baltimore, MD Wallace, NC I Bear, DE

Estimated Item No Description Quantity Unit Unit Price Total Price Comments

A-1 Mobilization 3 EA $15,000.00 $ 45,000.00 Need 3 Mobilizations to Cover MOT A-2 6"-12"Sewer Main CCTV Inspection 1284 LF $ 1.65 $ 2,118.60 A-5 6"-12" Heavy/Specialty Cleaning 1284 LF $ 0.80 $ 1,027.20 A-11 8" CIPP Liner Installation MH to MH 1284 LF $ 35.00 $ 44,940.00 A-22 Re-Establish Connection-Laterals 3 EA $ 68.50 $ 205.50

Estimated ! $ 93,291.70 !

FACILITIES MOTION

CURED IN PLACE PIPELINE (CIPP) SEWER RELINING SERVICES

MOVE that the Commission accept and award the Cured in Place Pipeline (CIPP) Sewer Relining Services, to AM Liner East, Incorporated, of Berryville, Virginia, for the Contract prices, as submitted in the Howard County, Maryland On-Call Sewer Rehabilitation Construction Contract, valid through June 30, 2021 for a not-to-exceed amount of $125,000.00.

FURTHER, MOVE that staff be authorized and directed to sign all documentation relating to this Contract, including but not limited to all approved change orders.