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Anticipated Sale of Wastewater Assets

On December 18, 2007, subsequent to a formal request for proposals, the Board of County Commissioners initiated the negotiation process with Artesian Water Maryland Inc./Artesian Wastewater Maryland, Inc. with the intent to provide water and wastewater services to the Elkton West Service area, culminating with the

award of a franchise in August approximately 12,000 acres in size

2008. and is

The largely

Elkton West Service Area is north and west of the corporate

limits of the agreements,











the County and Artesian are performing their due diligence towards

the transfer of the Harborview, Pine Hills and Meadowview as the Harborview, Highlands, Meadowview and Cherry Hill Artesian.

water assets, as well wastewater assets to

The intent of the franchise award will be to transfer sewer flow from Elkton West, including the Cherry Hill, and the privately-held CECO utility to the Meadowview WWTP. This will transfer the flow out of the Chesapeake Bay watershed and resultantly enable the County to obtain nutrient credits for the expansion of the Northeast River advanced wastewater treatment plant, known as Seneca Point. The planned transfer of assets will eliminate future planned capital costs associated with improvements to the facilities being transferred. As a result, proceeds from the transfers and the elimination of capital funding for the transferred facilities will enable the County to be in a better financial position with the expansion of the Seneca Point WWTP. The estimated total purchase price is $13 million, and the anticipated date for completion of the transfer is on or before April 30, 2010. The effect of this transaction should result in the transfer of 27% of our existing wastewater customers, as well as 45% of the billable flow to Artesian.

Proposed Port Deposit Improvements

The Town is currently in the process of planning for the upgrade of the sewer system to meet the future needs of the former Naval Training Center at Bainbridge and the surrounding area. It is anticipated that the wastewater project will include phased construction of a new conveyance sewer to the North East River Advanced Wastewater Treatment Plant. Phase I of the project will consist of interim improvements to the Town’s infrastructure system to accommodate initial flows from Bainbridge. Phase II of the project will consist of constructing a 1.0 MGD capacity conveyance sewer to the North East River Advanced Wastewater Treatment Plant. The conveyance sewer will consist of a series of pump stations and force main. Phase III of the project will consist of constructing additional collection systems for Bainbridge and the surrounding areas with the Town District, Development District and the Suburban District.


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