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Home My WebLink About230214aJohn F. Barr, President Jeffrey A. Cline, Vice President BOARD OF COUNTY COMMISSIONERS February 14, 2023 OPEN SESSION AGENDA 9:00 AM INVOCATION AND PLEDGE OF ALLEGIANCE CALL TO ORDER, President John F. Barr APPROVAL OF MINUTES: January 31, 2023 9:05 AM COMMISSIONERS’ REPORTS AND COMMENTS 9:15 AM STAFF COMMENTS 9:25 AM CITIZEN PARTICIPATION 9:35 AM STATE OF THE CIRCUIT COURT REPORT Honorable Brett R. Wilson, Administrative Judge, Circuit Court; Kristin Grossnickle, Court Administrator, Circuit Court 9:50 AM FY23 BUDGET ADJUSTMENTS TO THE WASHINGTON COUNTY BOARD OF EDUCATION’S GENERAL FUND BUDGET Jeffrey Proulx, Chief Operating Officer, Washington County Public Schools; David Brandenburg, Executive Director of Finance, Washington County Public Schools 9:55 AM BLACK HISTORY MONTH Fred Chavis, President, Washington County NAACP 7030 10:05 AM PROGRESS ON THE DOLEMAN BLACK HERITAGE MUSEUM FUTURE HOME PROJECT Alesia Parson, Project Director; Wendi Perry, Curator, Doleman Black Heritage Museum 10:15 AM PRESENTATION OF PROCLAMATION FOR BLACK HISTORY MONTH Board of County Commissioners of Washington County 10:20 AM FOREIGN TRADE ZONE #255 – ZONE SCHEDULE CHANGES INCLUDING FEES AND REORGANIZATION OF STRUCTURE Linda Spence, Business Specialist and Foreign Trade Zone #255 Administrator, Business Development Wayne K. Keefer Randall E. Wagner Page 2 of 2 OPEN Session Agenda February 14, 2023 Individuals requiring special accommodations are requested to contact the Office of the County Commissioners, 240.313.2200 Voice/TDD, to make arrangements no later than ten (10) working days prior to the meeting. 10:30 AM PRESENTATION OF THE 2024-2033 CAPITAL BUDGET – DRAFT ONE Michelle Gordon, Chief Financial Officer, Budget and Finance; Kelcee Mace, Deputy Director, Budget and Finance 11:15 AM CLOSED SESSION - (To discuss the appointment, employment, assignment, promotion, discipline, demotion, compensation, removal, resignation, or performance evaluation of appointees, employees, or officials over whom this public body has jurisdiction; or any other personnel matter that affects one or more specific individuals; To consult with counsel to obtain legal advice on a legal matter; To consult with staff, consultants, or other individuals about pending or potential litigation; To discuss public security, if the public body determines that public discussion would constitute a risk to the public or to public security, including: (i) the development of fire and police services and staff; and (ii) the development and implementation of emergency plans; To conduct or discuss an investigative proceeding on actual or possible criminal conduct; and To comply with a specific constitutional, statutory, or judicially imposed requirement that prevents public disclosures about a particular proceeding or matter.) 1:30 PM RECONVENE IN OPEN SESSION ADJOURNMENT Open Session Item SUBJECT: State of the Circuit Court Report PRESENTATION DATE: February 14, 2023 PRESENTATION BY: Honorable Brett R. Wilson, Administrative Judge Kristin Grossnickle, Court Administrator RECOMMENDED MOTION: The presentation is for informational purposes only. REPORT-IN-BRIEF: The State of the Washington County Circuit Court report DISCUSSION: To share information on the operations of the Circuit Court during the past year. FISCAL IMPACT: N/A CONCURRENCES: N/A ALTERNATIVES: N/A ATTACHMENTS: AUDIO/VISUAL NEEDS: N/A Board of County Commissioners of Washington County, Maryland Agenda Report Form Board of County Commissioners of Washington County, Maryland Agenda Report Form Open Session Item SUBJECT: FY23 Budget Adjustments to the Washington County Board of Education’s General Fund Budget PRESENTATION DATE: February 14, 2023 PRESENTATION BY: Mr. Jeffrey Proulx, Chief Operating Officer, WCPS Mr. David Brandenburg, Executive Director of Finance, WCPS RECOMMENDED MOTION: Move to approve the requested adjustments to the Board of Education’s FY2023 General Fund Budget. REPORT-IN-BRIEF: The Annotated Code of Maryland requires local school systems to periodically re-forecast their financial needs and make necessary changes to their budgets. To that end, the Washington County Board of Education approved the attached list of changes to its FY2023 General Fund Budget at its February 7, 2023, meeting. DISCUSSION: The changes that the Board of Education approved on February 7, 2023, cross major categories. Therefore, these requested adjustments must also be approved by the Board of County Commissioners. The Board of Education has asked its Finance staff to review the requested budget changes with the Commissioners and answer any questions that they may have. FISCAL IMPACT: None. These proposed modifications merely adjust various categories of the budget to reflect updated information on revenue and spending trends. CONCURRENCES: The Board of Education’s Finance Committee reviewed the proposed adjustments at their meeting on January 30, 2023, and recommended them for approval by the full Board. The Board of Education approved these changes at their February 7, 2023, meeting. ALTERNATIVES: None ATTACHMENTS: • FY2023 general fund budget adjustments AUDIO/VISUAL NEEDS: None Category Value The primary reason for variance is: Revenue $742,475 Higher nonpublic placements State reimbursement, recovery of costs, and interest income 558,893 Redeployment to Other Instructional Costs category Total Expense Reductions/Additional Revenue $3,451,383 Mid-Level Administration $96,125 Substitute clerical costs to cover vacancies and temporary assignments Instructional Salaries $755,220 Adjustment to turnover credit Other Instructional Costs 611,968 New Blueprint requirements for dual enrollment costs Special Education 1,026,410 961,660 Higher diesel prices, bus prices, and adjustment of turnover credit $3,451,383 1/26/2023 Q2 FY23 Category Transfers Open Session Item SUBJECT: Black History Month PRESENTATION DATE: Feb 14, 2023 PRESENTATION BY: Fred Chavis, President, Washington County NAACP 7030 RECOMMENDED MOTION: Approved funding REPORT-IN-BRIEF: Requesting funding for Black History Month events: Food Drop/Speaking Event and our trip to the African-American Museum in DC through our Bridges Program. DISCUSSION: N/A FISCAL IMPACT: $5,000 CONCURRENCES: N/A ATTACHMENTS: See attached document Board of County Commissioners of Washington County, Maryland Agenda Report Form LIBERATION INC Black History Month & Black Mental Health Prepared for the Washington County Commissioners Prepared by: Fred Chavis, Owner February 7, 2023 LIBERATION INC EXECUTIVE SUMMARY Liberation Inc Provide wrap-around opportunities that focus on the whole person and whole family, through the use of drug use, crime, and poverty prevention outreach programs–in order to uplift in the form of political involvement, economical growth, social strength, health and wellness, and an increase in educational opportunities. The Issue Communities are facing a cyclical pattern of undesirable conditions such as drug use, crime, and poverty. Wrap- around services that focus on the root issue through outreach are difﬁcult to come by for people in need. There is an extreme opportunity gap between White and Black people in communities because of the unconscious and consciously biased programs that elevate and exclude particular groups of people. Issues that Black communities face are often attributed to apathy, therefore wrap-around services are not promoted to Black communities thus making it difﬁcult to access the services as a Black citizen. Services provided often focus on temporary solutions, thus still allowing the cycle of drug use, crime, and poverty to continue. Black communities have few recreational activities that promote various activities and educational opportunities that promote independence and growth. Black communities often face reactive consequences, rather than preventive measures. Black communities consistently rank the lowest out of all other groups because of the systematic policies and exclusion of opportunities for Black communities. Solution Communities are facing a cyclical pattern of undesirable conditions such as drug use, crime, and poverty. Wrap- around services that focus on the root issue through outreach are difﬁcult to come by for people in need. We focus on issues by the root. This is obtained through enrichment activities, education, mentorship, ﬁeld trips, and relationship-building. We focus on the mental well-being of our youth and community. Events Black History Event - This will focus on local black businesses across Western Maryland. Business owners will be honored while having the platform to speak on unity and support black businesses. Additional speakers will include some Pastors and NAACP leadership. This is the 3rd year we have held this event. The total budget for this event is $5,000. Food Drop/Black History Event - We would like to be able to provide a food drop for the residents at the corner of Bethel Street. We anticipate serving 125 - 150 families. Along with black leadership present to have a full event that addresses food needs, mental health, and education. —————————- By The Roots •Roots by Liberation focuses on youth ages 13 - 18. Programming focuses on identity and empowerment through that identity. Our program also focuses on life skills along with educational tutoring. We aim to create well-rounded, respectful leaders in our youth through mentorship. •Individualized schedules will be created that best serve and accommodate the needs of the youth and their family or guardians. All hands-on activities and programs allow free expression, conﬁdence, and social skills. •We meet the children where they are at. LIBERATION INC BUDGET Liberation inc is in Good Standing with the State of Maryland and is a registered 501(c)(3) entity. Federal Tax Identiﬁcation: 88-2387821 Description Amount Black History Month Event (Feb 26th) Hosted by Liberation Inc. & NAACP $5,000 Roots - Individualized Youth Mentorship $2,500 Bridges: Washington DC Trip - African American Museum (10 youth)$1,000 Food Drop Event (Feb 18th, $20 per household)*$4,000 Donations and Sponsorship for local black organizations and events $4,500 Total $17,000 Open Session Item SUBJECT: PROGRESS ON THE DOLEMAN BLACK HERITAGE MUSEUM FUTURE HOME PROJECT. PRESENTATION DATE: FEBRUARY 14, 2023 PRESENTATION BY: DOLEMAN BLACK HERITAGE MUSEUM, PROJECT DIRECTOR ALESIA PARSON, AND CURATOR WENDI PERRY. RECOMMENDED MOTION: REPORT-IN-BRIEF: The Doleman Black Heritage Museum (DBHM) Future Home Project is the first economic development project within the Jonathan Street corridor beside the creation of low-income subsidized Public Housing circa 1954 and 1975 and the City of Hagerstown’s current landmark upgrades at the Medal of Honor Triangle and Wheaton Park, to the utility and beautification upgrades in 2007-2009. DBHMs objectives for this economic development project are not limited to building a home-to-house and exhibiting artifacts relative to local Black history. For our future home's plan and design, DBHM hired Travis Price Architects of Washington D.C. to ensure the project will offer various economic opportunities and relief within U.S. Census track 4 in Hagerstown and Washington County. Phase I - Step Four -Pre-Construction Activities: Step 1 - DBHM performed a rigorous Request for Qualification (RFQ) from 16 architectural firms from the tri-state region. Of those invited to participate in the RFQ, six firms participated in the Request for Proposal (RFP) search for the right architect for the building's plan and design. Three architectural firms were then interviewed by the DBHM Board of Directors, which voted unanimously to hire Travis Price Architects (TPA). TPA and DBHM performed several in-person site visits and programming meetings to determine the board's vision for the property. Most important for the directors was to produce a museum that would offer a self-sustaining revenue stream(s) from the opening day that also complements the legacy of Charles and Marguerite Doleman and expands upon the rich history of Hagerstown and Washington County. Step 2 - Preliminary building design and layout discussions with TPA with tweaks to add or subtract various likes and dislikes from DBHM. This discussion would go on for several months and ended with TPA offering the solution of returning the building to its original two-building structure. Building One - Rehabilitation: The original Coca-Cola Bottling Company and former Administrative Building will house the revenue stream. Housing lease options for a cafe, consignment art gallery, entertainment venue, and bookstore. Building Two - Sea Container-New Construction: the innovative use of prefabricated sea containers in constructing our feature five-story plus basement new museum building decreases construction costs and buildout time. This building will contain artifacts storage, an exhibit prep area, a multimedia communications studio, classrooms, a library and media room, a gift shop, an events venue with a prep kitchen, a board room, and offices. Step Three - TPA plat mapping of the area, meeting with Hagerstown Housing Authority for additional parking options, schematic design, detailed floor plans, application submission, and presentation to the City of Hagerstown’s Board of Zoning Appeals for a parking variance and rezoning for the particular use of a museum. Both were granted for the project while DBHM was simultaneously preparing the request for the Washington County Coalition for the 2023 Legislative Session. Fourth and Final Pre-construction Activities Step - TPA begins working to solidify its construction budget, contracting a civil engineer to conduct a required environmental study, structural engineers, sea containers prefabrication facilities, and a construction company to produce a three-dimensional and digital schematic building layout and design with landscape design and the identification of necessary construction documents, permits, and costs for demolition of the back end of the second building and prepping building one for rehabilitation. DBHM is working with TPA and the City of Hagerstown to meet local and state obligations under the DHCD-Community Legacy grant award for steps 1-3. Funding for Pre-Construction Activities 1-3: DBHM entered into a Subrecipient Agreement with the City of Hagerstown to apply for the FY21 DHCD - Community Legacy Program award of $325k. Of this, $120k was designated to repay DBHM’s loan agreement with the City and $205k towards the architectural programming, plan, and design. FY23 $563k Congressionally Directed Spending - Omnibus Appropriations Bill Grant Funding Award through the Department of Housing and Urban Development (HUD), which is designated to be utilized to complete phase I, step four. However, before we can tap into the designated $563k through HUD, the project must have proof by certification of an environmental study. Therefore, DBHM is working with our Congressional Representative staff to apply for $10 million in Congressionally Directed Spending - Omnibus Appropriation Bills opportunities approved by Congress for the next two years. Therefore, we have applied for the WCARF-NSF, which exceeds the $100k limit by $160k. As listed in the grant application, these funds will allow the DBHM project to continue progressing with the architect, civil engineer, and engineer to stay in place while federal funds are released. In the interim, DBHM will continue working with the Municipal and Legislative representatives toward the $1,019,000 request through the Washington County Coalition to complete phase I by the end of 2023. At this time, DBHM's financial position will allow a smooth transition into phase II of the project. DISCUSSION: FISCAL IMPACT : CONCURRENCES: ATTACHMENTS: DBHM will provide handouts of the plan and design of our future home. Open Session Item SUBJECT: Proclamation for Black History Month PRESENTATION DATE: February 14, 2023 PRESENTATION BY: Board of County Commissioners of Washington County to Fred Chavis, President, Washington County NAACP 7030; Alecia Parson, Project Director and Wendi Perri, Curator, Doleman Black Heritage Museum RECOMMENDED MOTION: N/A REPORT-IN-BRIEF: Proclamation Presentation WHEREAS, since President Gerald Ford established Black History Month in 1976, he stated that it was to celebrate the often-neglected accomplishments of African- Americans throughout the country’s history, and; WHEREAS, February was specifically chosen for various reasons, one being that Carter Godwin Woodson wanted to pay tribute to two great men - Abraham Lincoln and Frederick Douglass, both born in February, and; WHEREAS, these men changed the fortune of blacks in America and brought about several reforms to give blacks equal status as their white counterparts, and; WHEREAS, the story of the African-American experience in Maryland includes the life and accomplishments of Frederick Douglass, Harriet Tubman’s Underground Railroad Byway, and Thurgood Marshall, one of this century’s foremost leaders in the struggle for equal rights. NOW THEREFORE, we the Board of County Commissioners of Washington County, Maryland, hereby recognize the month of February as Black History Month. With this recognition, we celebrate the many achievements and contributions made by African- Americans to our economic, cultural, spiritual and political development. Board of County Commissioners of Washington County, Maryland Agenda Report Form Open Session Item SUBJECT: Foreign Trade Zone #255 - Zone Schedule Changes Including Fees and Reorganization of Structure PRESENTATION DATE: Tuesday, February 14, 2023 PRESENTATION BY: Linda Spence, Business Specialist and Foreign Trade Zone #255 Administrator, Department of Business Development RECOMMENDED MOTION: Motion to approve proposed changes to the Zone Schedule, including a reduction in administrative fees for Foreign Trade Zone (FTZ) #255 to be more consistent with those across the country. With this change, we also request adoption of the attached resolution to reorganize Foreign Trade Zone #255 from a Traditional Site Framework to an Alternative Site Framework. REPORT-IN-BRIEF: Requesting the authority to reduce administrative fees from $.07 per square foot and $175 per acre for outside storage to $.01 per square foot and $125.00 per acre for outside storage within Foreign Trade Zone #255. DISCUSSION: FTZ #255 was established in 2002, the Board of County Commissioners of Washington County, MD, the Grantee, chose not to collect fees for activity inside the Foreign Trade Zone, subzones, or its sites. Nearly two thirds (2/3) of the State of Maryland’s Foreign Trade Zone Grantees collect administrative fees, with a majority of those being municipal grantees. The Foreign Trade Zone is a tool designed to help our businesses realize significant profits in doing business inside its boundaries. With it comes a tremendous amount of administrative support, such as document processing, monitoring activities within its boundaries, and maintaining a working knowledge of the policies and procedures with the U.S. Department of Commerce and U.S. Customs and Border Protection. Since April 2022, when Washington County set it fee structure, we realized we were among the highest, not only in Maryland, but across the country. Reducing fees charged to Foreign Trade Zone #255 operators and users make Washington County more desirable in doing business with the zone. Further research and discussions with Foreign Trade Zone experts, a fair and equitable rate has been determined as follows: Annual Reporting and Monitoring fees assessed at $.01 (one cent) per square foot; and Outside storage at $125 per acre. All other fees to remain the same; Application Fee - $500; Activation of a Subzone or Site - $4,000; Deactivation of a Subzone or Site - $3,000. Reorganization of the current General Purpose Traditional Site Framework to an Alternative Site Framework provides additional flexibility for Grantees to more quickly add new zone operations. One of the benefits of the Alternative Site Framework is that companies may be added in just thirty (30) days. The Alternative Site Framework allows a Grantee Organization to restructure its zone with a formal Reorganization Application so that there is one primary or “magnet” site, with a permanent approval followed by up to five (5) additional “magnet” sites. Magnet sites are essentially the same as the current general-purpose zone industrial park sites. There will also be subzones or “usage-driven” sites for single operators only. Board of County Commissioners of Washington County, Maryland Agenda Report Form FISCAL IMPACT: n/a CONCURRENCES: Kendall Desaulniers, Assistant County Attorney; Jonathan Horowitz, Director of Business Development ALTERNATIVES: Deny Foreign Trade Zone – Zone Schedule modification and Reorganization ATTACHMENTS: Proposed Foreign Trade Zone #255 Zone Schedule; Foreign Trade Zone #255 Resolution AUDIO/VISUAL NEEDS: n/a Zone Schedule Charges, Rates, Rules and Regulations Foreign Trade Zone #255 Washington County, Maryland Under Grant Authority of the United States Foreign-Trade Zones Board Grantee: Board of County Commissioners of Washington County, Maryland 100 West Washington Street, Suite 1101 Hagerstown, MD 21740 Sites: A Multi-Site, General Purpose Zone Original Issue Date: November 1, 2002 Effective Date: April 5, 2022 DISCLAIMER – The information and appendices included in the Zone Schedule are for information purposes only. They reflect laws and regulations in effect at the time of submission of this schedule. Each Operator and/or User is responsible for awareness of and compliance with the laws and regulations currently in effect. P a g e | 2 Table of Contents Page Section I – Contact and Reference Information............................................................ 3 Section II - Overview ....................................................................................................... 4 Section III – Rules, Regulations and Policies ................................................................ 6 Section IV – Fee Schedule ............................................................................................. 13 Section V – Glossary of Terms ...................................................................................... 16 P a g e | 3 Section I - Contact and Reference Information Grantee Board of County Commissioners of Washington County, Maryland 100 West Washington Street, Suite 1101 Hagerstown, MD 21740 www.WashCo-MD.net Local Zone Administrator Washington County Department of Business Development 100 West Washington Street, Suite 1401 Hagerstown, MD 21740 www.WashCo-MD.net/Business-Development Information Regarding None Operators Having an Agreement with the Grantee to Offer Services to the Public U.S. Customs Baltimore Service Port & Border Protection 40 South Gray Street (Customs or CBP) Baltimore, MD 21202 Ph: 410-962-2666 Port Code: 1303 FTZ #255 Sites For a description of currently designated general-purpose zone sites and subzones, go to: www.Trade.gov/FTZ Click, “OFIS” Click, “Zone & Site Information” Select, FTZ #255 P a g e | 4 Section II - Overview    Foreign Trade Zones (FTZs or zones) are restricted access sites in or near U.S. Customs and Border Protection (Customs or CBP) ports of entry. The zones are licensed by the Foreign-Trade Zones Board (FTZB) and operated under the supervision of CBP. Specifically, zones are physical areas into which foreign and domestic merchandise may be moved for operations involving storage, exhibition, assembly, manufacture or other processing not otherwise prohibited by law. Zone areas “activated” by CBP are considered outside of the U.S. customs territory for purposes of CBP entry procedures. Therefore, the usual formal CBP entry procedure and payment of duties is not required on the foreign merchandise in FTZs unless and until it enters U.S. customs territory for domestic consumption. U.S. duties can be avoided on foreign merchandise re-exported from an FTZ, including after incorporation into a downstream product through activity in the FTZ. Zones have as their public policy objective the creation and maintenance of employment through the encouragement of operations in the United States which, for customs reasons, might otherwise have been carried on abroad. The FTZB can deny or limit the use of zone procedures in specific cases on public interest grounds. Foreign Trade Zone #255 FTZ #255 was granted by the FTZB to the Board of County Commissioners of Washington County, Maryland on July 3, 2002 (Board Order #1232). FTZ #255 is organized under the Traditional Site Framework (TSF). In accordance with the FTZB Regulations at 15 CFR Part 400.44, this zone schedule sets forth the rules and policies for the FTZ project, including a statement of the rates and charges (fees) applicable to FTZ operations. A copy of this zone schedule is available for public inspection at the offices of the Board of County Commissioners of Washington County, MD and any operator offering FTZ services to the user community. Uniform fees charged by the Board of County Commissioners of Washington County, MD to operators in order to recover the costs of maintaining the FTZ grant of authority are set forth in Section IV. All other charges and costs associated with the operation of a specific FTZ operation are the responsibility of the operator, user and/or property owner. Sites Site 1, Lakeside Corporate Center “Lakeside” – It is located in the far northeastern portion of Washington County and was once the former Ft. Ritchie Military Reservation. John Krumpotich operates this site, now undergoing conversion to industrial uses. John Krumpotich is a private developer tasked with the redevelopment of Ft. Ritchie. Lakeside is comprised of 276.3760 acres, all of which are presently contained within a Special Economic Development District, established in 1998 by the Board of County Commissioners of Washington County, Maryland. Site 2, Hagerstown Regional Airport “Airport” – This site, supported by adjacent properties owned by the Bowman Group, LLP and Affiliates, is comprised of 442.48 acres. The site is P a g e | 5 located in the central portion of Washington County north of the City of Hagerstown. The Airport is western Maryland’s main airport. Site 3, Maugansville – This site is located just south of Hagerstown Regional Airport. The Maugansville site is comprised of the Hub Industrial Park, which is an 80.6 acre collection of industrially zoned properties owned by entities controlled by the Dahbura family. The properties are located adjacent to Interstate 81 and benefit from direct Conrail railroad frontage. – This site was deactivated in 2014. Site 4, Hopewell Valley – This site is a significant cluster of properties owned by the Bowman Group, LLP or by corporate entities controlled by the Bowman Group, LLP and Affiliates, and by the Tiger Development Corporation. These combined properties are sited within the Hunters Green, Hopewell Valley, and/or Newgate Industrial Park industrial complex. Altogether, Site 4 contains 722.36 acres. Site 5, Hagerstown – This site is the Hagerstown Planned Industrial District #2, more commonly known as the City of Hagerstown Industrial Park. It is owned by the City of Hagerstown and contains 43.06 acres. – This site was deactivated in 2014. Site 6, Williamsport – Williamsport is located south of the City of Hagerstown, adjacent to the eastern side of Interstate Highway 81. The properties are owned by Bowman Group, LLP and Affiliates and consist in total of 172.217 acres, which are industrially zoned. Site 7, Hancock – This site is located in the western section of Washington County, near the historic Town of Hancock, Maryland. The site is owned by Mellott Enterprises, Inc., and is comprised of two parcels that together total 128.95 acres. The parcels are industrially zoned. This site is served by Interstate Highway 70. Hancock is located in the Town of Hancock Enterprise Zone, a State-sponsored enterprise zone, established by the State of Maryland in 1995. P a g e | 6 Section III – Rules, Regulations and Policies General Principle Governing Laws and Regulations Foreign Trade Zones Act (FTZ Act or Act) – FTZ #255 is governed by the Foreign Trade Zones Act, 19 U.S. Code 81a-81u as amended. A copy of the Act can be accessed on the FTZB’s website: www.Trade.gov/FTZ. Foreign-Trade Zones Board Regulations (FTZB Regulations) – FTZ #255 is regulated by the Foreign-Trade Zones Board under U.S. Code of Federal Regulations, Title 15, Part 400, as amended. Copies of these regulations shall be maintained, referred to and complied with by all operators and users. A copy of the regulations can be accessed on the FTZB’s website at: www.Trade.gov/FTZ. U.S. Customs and Border Protection Regulations (CBP or Customs Regulations) – FTZ #255 is regulated by U.S. Customs and Border Protection under U.S. Code of Federal Regulations, Title 19, Part 146. Copies of these regulations shall be maintained, referred to and complied with by all operators and users. A copy of the regulations can be accessed on the Government Printing Office’s website: www.GPO.gov/FDSYS/Browse/CollectionCFR.action?CollectionCode=CFR. Foreign Trade Zones Manual (FTZ Manual) – U.S. Customs and Border Protection publish a Foreign Trade Zones Manual to assist operators with conforming to the Customs Regulations. All operators are required to maintain a current copy of the Foreign Trade Zones Manual in addition to the Customs Regulations governing FTZs. A copy of the manual can be accessed on the CBP’s website at: www.CBP.gov/xp/cgov/Trade/Cargo_Security/Cargo_control/FTZ/. Roles of Grantee, Operator, and User Grantee – The corporate recipient of a grant of authority for a zone project; the public or private corporation to which the privilege of establishing, operating, or maintaining a foreign trade zone has been given. Board of County Commissioners of Washington County, MD is the grantee of FTZ #255. Operator – A person that operates within a zone or subzone under the terms of an agreement with the Board of County Commissioners of Washington County, MD and with the concurrence of CBP. The Board of County Commissioners of Washington County, MD explicitly delegates the responsibility for operation of zone sites to operators who will assume responsibility for compliance with all regulations of CBP, the FTZB, and other relevant government agencies. User – A party using a zone under agreement with an operator. A party using a zone for storage, handling, or manufacturing/production of merchandise in FTZ status. The operator and user can be the same party. If a user is not the operator and is delegated any of the operator’s P a g e | 7 responsibilities as contained in this zone schedule or the Customs Regulations, a written operator agreement and procedures manual are required. Availability of Zone – All rates and charges for all services and privileges within the FTZ shall be fair and reasonable, and the Board of County Commissioners of Washington County, MD shall afford to all who may apply to make use of or participate in the zone uniform treatment under like conditions, subject to such treaties or commercial conventions as are now in force or may hereafter be made from time to time by the United States with foreign governments. Users are subject to specific rules, rates, and charges of operators. Grantee Liability – A grant of authority shall not be construed to make the Board of County Commissioners of Washington, MD liable for violations by zone participants. The Board of County Commissioners of Washington County, MD’s role under the Act and the Foreign-Trade Zone Board Regulations is to provide general management of the zone to ensure that the reasonable needs of the business community are served. The Board of County Commissioners of Washington County, MD will not be liable and cannot assume any responsibility for any loss or damage to freight, cargo or merchandise, or other property within the FTZ, or for any loss or damage arising from acts of commission or omission of operators. Retail Trade – Retail trade is prohibited in activated areas of zones except sales or commercial activity involving domestic, duty-paid and duty-free goods, which may be conducted in activated areas of a zone under permit issued by the Board of County Commissioners of Washington County, MD and approved by the FTZB. No permits are necessary for sales involving domestic, duty-paid or duty-free food and non-alcoholic beverage products sold within the zone for consumption on premises by individuals working in the zone. Fines and Penalties – The FTZB may issue fines for violations of the Act or FTZB Regulations. Each violation is subject to a fine of not more than $1,000, with each day during which a violation continues constituting a separate offense subject to imposition of the fine. Each day during which an operator fails to submit to the Board of County Commissioners of Washington County, MD the information required for the Board of County Commissioners of Washington County, MD’s timely submission of a complete and accurate annual report to the FTZB shall constitute a separate offense subject to a fine of not more than $1,000. The FTZB also can instruct CBP to suspend activated status of all or portion of a zone or subzone. Residents within Zone – No person will be allowed to reside within the Foreign Trade Zone except federal, state, or municipal officers or agents, whose resident presence is deemed necessary by the FTZB. Insurance – All operators within Foreign Trade Zone #255 shall keep in full force the necessary insurance as required by the Board of County Commissioners of Washington County, MD at the expense of the operator. Merchandise stored, manipulated, or transferred within the zone is not insured by the Board of County Commissioners of Washington County, MD. A copy of the policy or certificate of insurance shall be delivered to the Board of County Commissioners of Washington County, MD upon request. P a g e | 8 Access to Zone Sites – Operators and users shall permit federal government officials acting in an official capacity and the grantee to have access to the zone and records during normal business hours and under other reasonable circumstances or as provided by law and regulations. Zone Schedule – All corporations, partnerships, and persons operating within activated zone space are subject to the zone schedule. The zone schedule shall contain a section listing rates and charges for zone participants with information sufficient for the FTZB or the Executive Secretary to determine whether the rates or charges are reasonable based on other operations in the port of entry area and whether there is uniform treatment under like circumstances among operators and users. Copies of the zone schedule are available from the Board of County Commissioners of Washington County, MD. Any updates to this zone schedule will be provided to the FTZB and each operator. Operator Agreement – Every individual, corporation or entity seeking to operate in FTZ #255 must enter into an operator agreement with the Board of County Commissioners of Washington County, MD. A copy of the standard operator agreement is available, upon request, from the Board of County Commissioners of Washington County, MD. If any conflict with this zone schedule and any operator agreement arise, the operator agreement will prevail. Users may become operators upon proper execution of an agreement with the Board of County Commissioners of Washington County, MD. Operators must execute an operator agreement with the Board of County Commissioners of Washington County, MD prior to the Board of County Commissioners of Washington County, MD issuing an activation concurrence letter. Property Owner Agreement – All property owners of FTZ #255 must enter into a property owner agreement with the Board of County Commissioners of Washington County, MD. A copy of the standard property owner agreement is available, upon request, from the Board of County Commissioners of Washington County, MD. If any conflict with this zone schedule and any property owner agreement arises, the property owner agreement will prevail. Zone Operations Merchandise Permitted in Zone – Foreign and domestic merchandise of every description, except such as is specifically prohibited by law, may, without being subject to the Customs laws of the United States except as otherwise provided in the Act and the regulations made thereunder, be brought into a zone. Merchandise which is specifically prohibited by law shall not be admitted into a zone. Any merchandise so prohibited by law which is found within a zone shall be disposed of in the manner provided for in laws and regulations applicable to such merchandise. Activities Permitted in Zone – Merchandise lawfully brought into a zone may, in accordance with the FTZB and Customs Regulations and the Act, be stored, sold, exhibited, broken up, repacked, assembled, distributed, sorted, graded, cleaned, mixed with foreign and domestic merchandise, or otherwise manipulated, or be manufactured into new articles of commerce. P a g e | 9 Production activity may be performed in a zone only if approved by the FTZB prior to commencement of the activity. Responsibility for Duty and Taxes – Operators and users are responsible and liable for payment of any and all charges, fees, duties or penalties due any agency of the federal, state, or local government arising from use of the zone, including liabilities on merchandise which is not accounted for to the satisfaction of CBP. Security and Safety Requirements in the Zone – All zone sites, in order to be approved for activation by CBP, must meet certain security and safety requirements. All zone sites are subject to security inspections by CBP and/or the Board of County Commissioners of Washington County, MD. Procedures manuals shall include current information on the method of physical as well as cargo security at the zone site. Each zone site will be evaluated separately by CBP who will determine the security measures that are required to protect the revenue of the United States based on the specific conditions of each zone site, e.g., description and value of merchandise activities, overall risk assessment, etc. After a zone site has been activated, all security and safety measures required to achieve the initial activation must be maintained at all times. Spot checks may be conducted by CBP and the Board of County Commissioners of Washington County, MD and liquidated damages or notices may be assessed if these requirements are found to be insufficiently met in any way. No operation or process of treatment will be permitted in the zone that, in the judgement of the FTZB, CBP, or the Board of County Commissioners of Washington County, MD, is detrimental to the public interest, health, and safety. Cost of special security devices and other requirements will be the responsibility of the operator. Inventory Control and Recordkeeping System – Operators will establish and maintain inventory control and recordkeeping systems in accordance with the Customs Regulations at 19 CFR 146. Record Retention – Operators are required to retain all records pertaining to zone merchandise for five (5) years after the merchandise is removed from the zone. Records must be readily available for Customs review at the zone. Records must be made available to the Board of County Commissioners of Washington County, MD upon request and as outlined in the operator agreement. Proprietary Information – Operators are required under the Customs Regulations to protect proprietary information in their custody from unauthorized disclosure. Use of Zone Facilities – Zone facilities will be used for the purposes of receipt, storage, handling, exhibition, manipulation, manufacturing/production, and shipment of foreign and domestic merchandise as considered necessary for the conduct of each operator’s normal business. Operators will not use or permit the FTZ to be used for any other purpose without the prior written consent of the Board of County Commissioners of Washington County, MD. P a g e | 10 Operators will not do or permit anything to be done in or about the FTZ that will in any way obstruct or interfere with the rights of other operators of the zone. FTZ Operator’s Bond – Operators must maintain, for Customs purposes, an FTZ operator’s bond in the amount required by Customs. This bond is to assure compliance with Customs Regulations. The bond is submitted on Customs & Border Protection Form (CF) 301. The bond conditions are set forth at 19 CFR 113.73, Customs Regulations. A failure to comply with the regulations may be deemed a “default” by Customs and result in the assessment of liquidated damages under the bond. The FTZ operator’s bond (04) is a separate bond type from an importer’s bond (01). Permits – Prior to activation, operators must obtain all necessary permits from federal, state and local authorities and comply with the requirements of those authorities. Procedures Manuals – Operators shall draft and maintain a procedures manual in accordance with the Customs Regulations as a condition of activation. The manual shall describe the inventory control and recordkeeping system(s) that will be used in the zone in compliance with the Customs Regulations. FTZ Applications New Zone Sites If a company is interested in taking advantage of the benefits of FTZ #255 at a location other than the currently approved sites, the company may request that an application for minor boundary modification, expansion, or subzone be filed by the Board of County Commissioners of Washington County, MD. Production Authority Production in a zone site is any activity involving the substantial transformation of a foreign article resulting in a new and different article having a different name, character, and use, or activity involving a change in the condition of the article which results in a change in the customs classification of the article or in its eligibility for entry for consumption. Production activity must be approved in advance by the Foreign-Trade Zones Board before the activity may commence using zone procedures. The company undertaking the activity must prepare a production notification to be submitted to the FTZB by the Board of County Commissioners of Washington County, MD or the company may submit the production notification to the FTZB directly with a copy submitted to the Board of County Commissioners of Washington County, MD and CBP. P a g e | 11 Types of Applications to the Foreign-Trade Zones Board There are several types of FTZ applications: • Minor Boundary Modification • Expansion • Subzone Production notifications to the FTZB requesting production authority can be made as part of an application for a new zone site or can be filed separately for an existing zone site. If the FTZB determines that further review of a production notification is necessary, the zone participant will be notified and a production application will be required. Additional information on the requirements for each type of application may be found on the FTZB’s website at: www.Trade.gov/FTZ. Procedures for Filing Applications to the Foreign-Trade Zones Board The Board of County Commissioners of Washington County, MD will assist prospective operators/users with determining the type of application(s) that is appropriate to accommodate the company’s needs. All applications, except production notifications, must be submitted to the Board of County Commissioners of Washington County, MD for review and approval prior to submission to the FTZB. The Board of County Commissioners of Washington County, MD will issue required transmittal/concurrence letters as appropriate. FTZ Activation and Deactivation and Alteration Activation When an operator desires to apply for activation with CBP, the operator will complete the steps outlined in 19 CFR 146.6. An operator agreement between the operator and the Board of County Commissioners of Washington County, MD will be executed prior to the Board of County Commissioners of Washington County, MD issuing a grantee activation concurrence letter. Prior to submitting an activation request to CBP, the operator will provide the Board of County Commissioners of Washington County, MD with a copy of the activation application, procedures manual and blueprint of the area to be activated for review by the Board of County Commissioners of Washington County, MD. Once the Board of County Commissioners of Washington County, MD reviews the activation application and if an operator agreement has been executed, the Board of County Commissioners of Washington County, MD reviews the activation application and if an operator agreement has been executed, the Board of County Commissioners of Washington County, MD will issue a grantee activation concurrence letter. P a g e | 12 If the operator conducts production activity at the zone site as defined by the FTZB, a copy of the FTZB production authority will be provided to the Board of County Commissioners of Washington County, MD or the user’s plan for obtaining production authority will be described prior to the Board of County Commissioners of Washington County, MD issuing a grantee activation concurrence letter. As a condition of activation, all operators must agree to satisfy the requirements of CBP automated systems. Deactivation/Reactivation An operator may deactivate or reactivate its zone site. The operator must notify and obtain written approval from the Board of County Commissioners of Washington County, MD prior to requesting deactivation or reactivation with CBP. Alteration An operator may increase or decrease the amount of activated space within an authorized zone site, activate a separate site of an already activated zone with the same operator at the same port, or relocate an already activated site with the same operator. The operator must notify and obtain written approval from the Board of County Commissioners of Washington County, MD prior to requesting alteration with CBP. The operator shall provide a copy of the alteration request and CBP approval to the Board of County Commissioners of Washington County, MD including an updated blueprint of the activated area(s). Foreign-Trade Zones Board Annual Report The Board of County Commissioners of Washington County, MD is responsible for preparing and submitting to the FTZB an annual report summarizing all zone activity from January 1- December 31 of each year. The report will be submitted by the Board of County Commissioners of Washington County, MD to the FTZB by March 31 of the following year pursuant to the current requirements of the FTZB, which can be found at www.Trade.gov/FTZ. In order for the Board of County Commissioners of Washington County, MD to meet its responsibility in this regard, each operator will complete a report so that sufficient data is available to the Board of County Commissioners of Washington County, MD to complete the FTZB Annual Report. The operator will complete the report based on the FTZB requirements and guidelines, and submit it to the Board of County Commissioners of Washington County, MD by February 15 of each year. P a g e | 13 Section IV – Fee Schedule Fees Grantee Fees The Board of County Commissioners of Washington County, MD, the grantee, will be assessed a fee of $1,600 as determined by the Foreign-Trade Zones Board for applications for expansion modification, and a subzone. Operator Fees Application and activation fee(s) will be charged to an operator. The fee will cover grantee expenses for support, assistance and technical services with the standard Grantee/Operator Agreement required for activation. The fee is based on the following: • $500 – Application processing • $4,000 – Activation fees Deactivation Fees A deactivation fee will be charged to an operator when seeking to deactivate a zone site. This does not include temporary deactivation or alteration of a zone site or subzone. • $3,000 Annual Fees The annual fee for administration, overhead, marketing, education, legal expenses, etc., will be based on total activated space as follows: • $.07/square foot – All uses • $175/acre – Outside storage U.S. Customs and Board Protection Fees Previously mentioned on Page 10 of the Zone Schedule, the operator must maintain, for Customs purposes, a Customs Bond as a guarantee for the payment of all duties and taxes on any merchandise removed from the zone without a proper Customs permit, or otherwise is missing from the zone. At the time of issue of the zone schedule, no fees are charged by CBP for normal zone services. Should any fees or charges be imposed in the future, all such fees and charges shall be payable by the operator of the affected zone site including any charges for overtime and other special services provided at the request of an operator. Under no circumstances will the Board of P a g e | 14 County Commissioners of Washington County, MD be liable or responsible for any such CBP fees or charges. Foreign-Trade Zones Board Fees Any fees or charges imposed by the FTZB shall be payable by the operator/user of the affected zone site, or as apportioned by the Board of County Commissioners of Washington County, MD among the zone sites when appropriate. Under no circumstances will the Board of County Commissioners of Washington, MD be liable or responsible for any FTZB fees or charges incurred on behalf of companies seeking to operate or use the zone. Presently, the following FTZB fees apply for certain types of applications. Applications combining requests for more than one type of approval are subject to the fee for each category. • $4,000 – Non-manufacturing/processing or one (1) or two (2) products • $6,500 – Manufacturing/processing or three (3) or more products Harbor Maintenance Fees (HMF) The Water Resources Development Act of 1986 provides for a Harbor Maintenance Fee to be imposed for commercial use of Ports in the United States. This fee is provided for in Title XIV (Revenue Provisions) of the Act and is cited as the Harbor Maintenance Revenue Act of 1986. The purpose of the fee is to provide the Army Corps of Engineers with a dedicated source of revenue for funding Corps Port Project. CBP has been mandated to act as the collection agency for this fee. Date of implementation of the fee was April 1, 1987. The fee is assessed on water- borne cargo. Merchandise received into the zone will be assessed this fee upon entry when applicable. Payment is due by the importer of record on a quarterly basis on admitted merchandise. The current rate of the Harbor Maintenance Fee is .125% of the value of the commercial cargo. Merchandise Processing Fees (MPF) Merchandise that is formally entered or released is subject to the payment to Customs of an ad valorem fee of .21%. The fee shall be due and payable to Customs by the importer of record of the merchandise at the time of presentation of the entry summary and shall be based on the value of the merchandise as determined under 19 U.S.C. 1401a. The fee charged shall not exceed $485 and shall not be less than $25. Other Government Agency Fees Charges for services of other government agencies should be arranged for and paid by the operator who requires the use of such services. Under no circumstances will the Board of County Commissioners of Washington County, MD be liable or responsible for any other government agencies’ fees or charges. P a g e | 15 Fines, Penalties and Liquidated Damages The Board of County Commissioners of Washington County, MD will not be involved in the day-to-day operations of the zone project. CBP fines, penalties, or liquidated damage claims affecting zone merchandise or zone activities will be paid by the operator of the affected zone site. The same is true of any other fines, penalties, or liquidated damage claims by other government agencies concerning operations at the zone site. Under no circumstances will the Board of County Commissioners of Washington County, MD be liable or responsible for any fines, penalties, forfeiture, or liquidated damage claims. P a g e | 16 Section V – Glossary of Terms Act – The Foreign Trade Zones Act of June 18, 1934 (19 USC 81a-81u), as amended. Activation – Written approval by the grantee and Customs Port Director for FTZ operation to commence and for the admission and handling of merchandise in FTZ status. Activation can only take place in approved areas under the grant of authority by the FTZB. Prior to activation, an operator must enter into a written agreement the grantee. Adjacency – According to Section 400.11(b) of the Foreign-Trade Zones Board Regulations, general-purpose zone sites must be within 60 statute miles or 90 minutes driving time from the outer limits of a U.S. Customs Port of Entry boundary. Subzones are not subject to the same distance standard but must be able to have proper Customs oversight accomplished by physical and electronic means and merchandise must be presented for examination at a Customs site selected by Customs. Administrator – The position of the Business Specialist within the Washington County Department of Business Development is designated by the grantee to serve as a point of contact for information on the zone project and is to provide oversight and management support. Admission/Admit – Physical arrival of goods into the Foreign Trade Zone under FTZ status with the approval of Customs. The word “admission” is to be used instead of “entry” of goods in an FTZ to avoid confusion with Customs entry processes under Parts 141-144 of the U.S. Customs Regulations. Alteration – A change in the boundaries of an activated zone site; activation of a separate site of an already activated zone with the same operator at the same port; or the relocation of an already activated site with the same operator. Alternative Site Framework (ASF) – An optional approach to designation and management of zone sites allowing grantees greater flexibility and responsiveness to serve single-operator/user locations. Annual Reconciliation – A report required of activated operators by Customs within 90 days after the end of the zone year unless the Port Director authorizes an extension for reasonable cause. See 19 CFR Section 146.25 for more information. Annual Report – A report required by the FTZB from each grantee due March 31st of each year. Each operator must provide information to the grantee as requested and by the grantee’s established deadline in order for the grantee to aggregate the information and file the federal report on time each year. Annual Systems Review – A review by the operator required by Customs to identify system deficiencies to ensure that the inventory control and recordkeeping systems(s) meets the requirements of Customs. See 19 CFR Section 146.26 for more information. P a g e | 17 Antidumping/Countervailing Duties – As a matter of FTZB policy, zone procedures shall not be used to circumvent antidumping and countervailing duties. As such, merchandise subject to AD/CVD must be placed in privileged foreign status upon admission to an FTZ. Applicant – A corporation, entity or individual applying for the right to operate an FTZ site under the jurisdiction of FTZ #255. Audit/Inspection Procedures – These procedures provide the framework for Customs to reduce on-site supervision of FTZs and for operators to maintain efficiency of operations through the audit/inspection method of supervision. The systems may be manual, computerized, or a combination of both. These procedures are designed to meet the requirements of the U.S. Customs Regulations (T.D. 86-16) for Audit/Inspection Procedures in FTZs. Under the regulations, the operator maintains the inventory records. Customs is relieved of the obligation of actually keeping the records but maintains assurance of the system’s accuracy by selective examinations of merchandise, spot checks and audits of FTZ operations. Authorized Inventory Method – A Customs authorized inventory method other than a lot system (specific identification of merchandise); e.g., First-in-First-Out (FIFO). No lot files is required but the operator shall maintain a file of all CBPF 214s in sequential order. [19 CFR 146.37 (2)] Bond – A surety bond is a contract whereby one party, the surety, guarantees the performance of a second party, the principal, for the benefit of a third party, the oblige (the Federal government, in the case of Customs bonds). Should the principal fail to perform his agreement with the obliged, the surety will be required to pay liquidated damages, and will have the right to obtain reimbursement from the defaulting principal. “Customs bonds” – all bonds required to be given under Customs laws or regulations shall be known as Customs bonds. [19 CFR 113.4(a)] Boundary Modifications – A change of the area of a federally designated zone made by proper application to the U.S. Foreign-Trade Zones Board. (FTZ Manual, Section 4.4) Boundary modifications may be minor or major; zone expansions may be considered major boundary modifications (15 CFR 400.24). Co-Administrator – The position of the Business Leader within the Washington County Department of Business Development designated by the grantee to serve as a point of contact formation on the zone project and to provide oversight and management support. Commingling – Physically combined or mixed. [19 CFR 102.1(b)] Regarding fungible goods from different countries, which are commingled, the country or countries of origin may be determined on the basis of an inventory management method of the Customs regulations [19 CFR 102.12(b)]. Conditionally Admissible Merchandise – Merchandise that may be imported into the U.S. under certain conditions. Merchandise that is subject to permits or licenses, or that must be reconditioned to bring it into compliance with the laws administered by various Federal agencies, is an example of Conditionally Admissible Merchandise [19 CFR 146.1(b)]. P a g e | 18 Constructive Transfer – A legal fiction that permits acceptance of a Customs entry for merchandise in a zone before its physical transfer to the Customs territory [19 CFR 146.1(b)]. If the entry is thereafter rejected or canceled, the merchandise will be considered at that time to be constructively transferred back into the zone in its previous zone status [19 CFR 146.61]. Country of Origin – The country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin.” For a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin [19 CFR 134.1b)]. Country of Origin Marking – Unless excepted by law, every article of foreign origin (or its container), imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit in such manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article [19 CFR 134.11]. Goods leaving a zone for entry into the United States must be properly marked with the applicable country of origin unless accepted under Customs Regulations. If an imported article undergoes a substantial transformation while in the foreign- trade zone, that is, such processing that the resultant product is one having a name, character or use differing from that of the article that was admitted into the foreign trade zone, the final product may no longer be considered to be of foreign origin. Authorization of the use of the legend “Made in USA” is beyond the scope of Customs; it is within the jurisdiction of the Federal Trade Commission. If no transformation occurs, the requirements of Section 304 of the Tariff Act must be met upon entry of the merchandise into the Customs territory. Customs-Trade Partnership Against Terrorism (C-TPAT) – A voluntary government- business initiative to build cooperative relationships that strengthen and improve overall international supply chain and U.S. border security. Customs & Border Protection – On March 1, 2003, the border inspection functions of the U.S. Customs Service, the Immigration and Naturalization Service, and the Agriculture and Plant Health Inspection Service, along with the U.S. Border Patrol, were transferred to U.S. Customs & Border Protection. Customs is an official agency of the Department of Homeland Security. Customs & Border Protection is responsible for carrying out the Tariff Act and various other laws and regulations in respect to foreign trade zones. Customs Broker – A person who is licensed to transact customs business on behalf of others [19 CFR 111.1]. A firm, representative, or individual who acts on behalf of the operator and/or the importer of record under an authorized power of attorney. Customs Modernization Act – A 1993 law that expanded statutory recordkeeping requirements for importers and their agents. The law fundamentally changed to U.S. Customs & Border Protection enforcement methodology from a transaction-by-transaction approach to a post entry audit approach. The new method of enforcement is similar to the Internal Revenue Service (IRS) and places the burden for valuation and classification on the importer. P a g e | 19 Customs Territory of the United States – The territory of the U.S. in which the general tariff laws of the U.S. apply. “Customs territory of the United States” includes only the States, the District of Columbia, and Puerto Rico (General Note 2, Harmonized Tariff Schedule of the United States [19 CFR USC 1202]), [19 CFR 146.1(b)]. Zone status merchandise in an FTZ is considered to be outside of the Customs territory of the United States. Deactivation – Voluntary discontinuation of the activation of an entire zone or subzone by the grantee or operator. Discontinuance of the activated status of only a part of a zone site is an alteration [19 CFR 146.1(b)]. Default – An act or omission that will result in a claim for duties, taxes, charges, or liquidated damages under the FTZ Operator’s Bond. Destruction – Destruction means the complete destruction of articles or merchandise to the extent that they have no commercial value. Any residue from destruction within a zone, which is determined to be without commercial value, may be removed to Customs territory for disposal [19 CFR 146.52(e)]. Destruction in a zone may be performed only under approved permit from the Port Director of U.S. Customs & Border Protection. Direct Delivery – A procedure for delivery of merchandise to an FTZ without prior application and approval on CBPF 214; designed for shipments where ordering and timing are under the control of the operator. Approval to utilize direct delivery must be obtained from the Port Director [19 CFR 146.39]. Domestic Status Merchandise (DOM) – Merchandise that has been (i) grown, produced, or manufactured in the U.S. and not exported therefrom, (ii) previously entered into the commerce of the United States as duty and tax free or (iii) previously imported into Customs territory and properly released from Customs custody. This means imported merchandise on which all necessary duties and taxes, if applicable, have been paid, and if upon which no drawback has been claimed, is considered Domestic status merchandise when admitted to a foreign trade zone [19 CFR 146.43]. Dutiable Value – For material imported from a foreign country, the price actually paid or payable for the foreign sourced material in the transaction that caused the material to be admitted into the zone, less, if included, international shipment and insurance costs and U.S. inland freight costs. The dutiable value is used to calculate duty payments [19 CFR 146.65(b)(2)]. Duty – A tax on imports. In a foreign trade zone, duties are not payable until the merchandise exists the zone and is entered into the commerce of the United States. Entry – To bring merchandise into the Customs territory of the United States. Documentation required by [19 CFR 142.3] to be filed with the appropriate Customs officer to secure the release of imported merchandise from Customs custody, or the act of filing that documentation [19 CFR 141.0(a)]. P a g e | 20 Estimated Weekly Entry – An estimated entry, made on CBPF 3461 and officially accepted, estimating the removals of merchandise during a 7-day period [19 CFR 146.63(c)(a)], Estimated Weekly Removals (Application for Weekly Zone Permit) – An estimate of weekly in-bond removals may be made on CBPF 7512 and officially accepted, estimating the in-bond removal of during a 7-day period [19 CFR 146.68(a)]. This procedure may be used for exports or zone-to-zone transfers from a zone and requires a weekly reconciliation report. Alternatively, electronic in-bonds using QP/WP procedures may be used. Expansion – Expand the physical dimensions of an approved zone area as it relates to the scope of operations envisioned in the original plan [15 CFR 400.24]. Export – The transportation of merchandise out of the U.S. for the purpose of being entered into the commerce of a foreign county [19 CFR 192.1]. First-In-First-Out (FIFO) – The FIFO is the method by which fungible merchandise is identified by recordkeeping on the basis of the first merchandise received into the inventory. Under this method, withdrawals are from the oldest (first-in) merchandise in inventory at the time of the withdrawal. Foreign-First (FOFI) – An accounting method based on the assumption that foreign status merchandise is decremented first. Foreign Merchandise – Imported merchandise of every description (except articles specifically and absolutely prohibited by statue) that has not been released from U.S. Customs custody into the U.S. Customs territory. Imported merchandise upon which duty and taxes, if applicable, have not been paid [19 CFR 146.1(b)]. Foreign Trade Zone (FTZ) – A foreign trade zone is one or more restricted-access sites, including subzones, in or adjacent to a Customs port of entry, operated as a public utility under the sponsorship of a zone grantee authorized by the Foreign-Trade Zones Board, with zone operations under the supervision of Customs & Border Protection [15 CFR 400.2]. Foreign Trade Zones Act – The Foreign Trade Zones Act of June 18, 1934 [19 USC 81a-81u], as amended, that established the Foreign-Trade Zones Board and the Foreign-Trade Zones Board Regulations. This statute is administered through 15 CFR 400 (Foreign-Trade Zones Board Regulations) and throughout 19 CFR (Customs Regulations). Foreign-Trade Zones Board (FTZB) – The Board that was established to carry out the provisions of the Foreign Trade Zones Act of 1934, codified in Title 19, 81a-81u. The Board consists of the Secretary of Commerce, who is chairman and executive officer of the Board, and the Secretary of the Treasury, or their designated alternatives [19 USC 81a; 15 CFR 400.2]. The Board staff is responsible for administering the FTZ program on behalf of the Board. The Executive Secretary of the Board staff represents the Board in administrative, regulatory, operational, and public affairs matters. The Executive Secretary serves as the director of the staff. P a g e | 21 Foreign Trade Zone Number – A number assigned by the Foreign-Trade Zones Board upon establishment of a foreign trade zone. Foreign Trade Zone Forms/Reports – Forms/reports used in the operation of foreign trade zones are designated by Customs. These forms/reports may be completed by either the operator/user as the Importer of Record, its duly assigned Customhouse broker, or the operator. In addition to forms/reports used general for bonded movements, imports and exports, the main FTZ forms/reports required by Customs include: Customs Form 214 (CBPF 214) Application for FTZ Admission and/or Status Designation Customs Form 216 (CBPF 216) Application for FTZ Activity Permit Fungible Merchandise – Merchandise that for commercial purposes is identical and interchangeable in all situations [19 CFR 191.2(b)]. In an FTZ, fungible merchandise may be identified by an inventory method authorized by Customs, which is consistently applied, such as First-In, First-Out (FIFO) and using a unique identifier [19 CFR 146.32(2)]. Grant of Authority – A document issued by the Foreign-Trade Zones Board that authorizes a zone grantee to establish, operate and maintain a zone, subject to limitations and conditions specified in 15 CFR Part 400 and 19 CFR Part 146. The authority to establish a zone includes the responsibility to manage it. Grantee – A Grantee is the corporate recipient of a grant of authority for a zone project [15 CFR 400.2]. A grantee is a public or private corporation to which the privilege of establishing, operating, or maintaining a foreign trade zone has been given [FTZ Manual, Section 3.10]. Harbor Maintenance Fee (HMF) – A port use fee of 0.125 percent of a cargo’s value may be payable by commercial vessels unloading cargo at a port that is authorized to charge HMG [19 CFR 24.24]. The applicant for admission of cargo unloaded in a foreign trade zone must pay the HMF due on a quarterly basis [19 CFR 24.24(e)(2)(iii)]. HMF payment must be received no later than 31 days after the close of the quarter being paid. Quarterly periods end on the last day of March, June, September, and December. Imports – Foreign merchandise of every description (except articles specifically and absolutely prohibited by statute) entered into Customs territory to become a part of the domestic supply for the purpose of domestic commerce or consumption, and particularly that which is entered into regulations of various other federal agencies having jurisdiction within the zone, is said to be “imported” into foreign trade zones, Customs bonded warehouses, or Customs custody. This latter merchandise in relation to operations in the zone, is considered to be foreign merchandise until its entry into the commerce of the United States. In-Bond Merchandise – Any merchandise other than explosives and merchandise the importation of which is prohibited, arriving at a port of entry in the United States may be entered, under such rules and regulations as the Secretary of the Treasury may prescribe, for transportation in-bond without appraisement to any other port of entry designated by the consignee, or his agent, and by such bonded carriers as he designates, there to be entered in P a g e | 22 accordance with the provisions of this chapter. Pursuant to Public Resolution 108, of June 19, 1936, (19 USC 1551, 1551a) and subject to compliance with all other applicable provisions, the Port Director, upon the request of the party in interest, may permit merchandise entered and examined for Customs purposes to be transported in-bond between ports by bonded cartmen or lightermen duly qualified if the Port Director is satisfied the revenue [19 CFR 18.1(b)]. Foreign status merchandise that is moved to or from another port other than the port in which the zone is located must be moved in-bond. Lapse Provision – Authority for a zone or a subzone shall lapse unless the zone (in the case of subzones, the subzone facility) is activated, pursuant to 19 CFR Part 146, and in operation not later than five years from the authorization of the zone or subzone, subject to the provisions of Board Order 849. Magnet Site – A site intended to serve or attract multiple operators under the Foreign-Trade Zones Board’s Alternative Site Frameworks (ASF). Manipulation – Activity described as manipulation is generally considered to include cleaning, sorting and/or repacking or otherwise changing condition but not manufacture/production. Merchandise – Merchandise includes goods, wares, and chattels of every description except prohibited merchandise. (Building materials, production equipment and supplies for use in operation of a zone are not considered “merchandise”). Mixed Status Merchandise – Foreign merchandise which has been combined with domestic merchandise in the FTZ is sometimes referred to as mixed status merchandise. Merchandise Processing Fee (MPF) – Generally, merchandise that is formally entered or released is subject to the payment to Customs of an ad valorem fee of 0.21 percent. The fee shall be due and payable to Customs by the importer of record of the merchandise at the time of presentation of the entry summary and shall be based on the value of the merchandise. Per entry, the ad valorem fee (MPF) shall not exceed $485 and shall not be less than $25. This fee is assessed differently for formal and for informal entries or releases. An ad valorem fee and other charges are applicable according to the provisions of 19 CFR 24.23. On October 21, 2011, Public Law No: 112-40 was adopted. The law temporarily increases the merchandise processing fee from .21% to .3464% from October 1, 2011, through November 30, 2015. The MPF rate reverts to .21% from December 1, 2015, through September 30, 2016. The law temporarily decreases the merchandise processing fee from .21% to .1740% from October 1, 2016, through September 30, 2019. The MPF rate reverts to .21% after September 30, 2019. The cap of $485 per entry remains unchanged. Non-privileged Foreign Status (NPF) – Merchandise subject to tariff classification according to its character, condition and quantity as constructively transferred to Customs territory at the time the entry or entry summary is filed with Customs. In other words, a status of merchandise for tariff purposes that provides for classification and appraisement in accordance with the condition of merchandise when constructively transferred to the Customs territory of the United States [19 CFR 146.42 and 146.65(a)(2)]. In a zone, NPF merchandise may be changed to P a g e | 23 Privileged Foreign (PF) or Zone Restricted (ZR) status before any processing/manufacturing has occurred, at the option of the zone user and with approval by Customs [FTZ Manual, Section 5.6]. Waste recovered from any manipulation or manufacture of PT or NPF merchandise in a zone has NPF status. NPF status is selected when the duty rate of the finished product is lower than the duty rate of the imported foreign components in a manufacturing environment. Operator – An operator is a person that operates within a zone or subzone under the terms of an agreement with the grantee (or third party on behalf of the grantee), with the concurrence of Customs [15 CFR 400.2]. Operator Agreement – Prior to activation, an agreement between the operator and grantee will be executed. Activation cannot occur without execution of an operator agreement and issuance of an activation concurrence letter by the grantee. Operator’s Bond – All operators must submit to Customs a bond to assure compliance with Customs regulations. The bond is submitted on Customs Form (CF) 301. The bond provisions are set forth at 19 CFR 113.73, Customs Regulations. A failure to comply with the regulations may be deemed a “default” by Customs and results in the assessment of liquidated damages under the bond. Penalties/Fines – Merchandise introduced into the United States contrary to law may subject the responsible parties to penalty actions. If merchandise is entered, introduced, or attempted to be entered or introduced by a false document, oral or written statement, or act or omission which is the result of fraud, gross negligence or negligence, the person(s) responsible may be liable for a civil monetary penalty as provided in 19 USC 1592. Upon violation of the FTZ Act, or any regulation issued under the Act, the person responsible shall be subject to a fine of not more than $1,000. Each day during which a violation continues may constitute a separate offense. Liquidated damages, where applicable, will be imposed in addition to the fine. Permit to Transfer (PTT) – The request and Customs authorization procedures for within port movements of cargo. Bonded cargo destined for a foreign trade zone can be moved on a Customs-authorized PTT that is transmitted to Customs electronically through the electronic CBPF 214 process or using a manual CBPF 214 or CBPF 6043. Port Director – The principal Customs official of a designated port of entry (except for the Headquarters Port). Under certain contexts, refers to whomever the Port Director delegates to act in his or her authority and thus may refer to any Customs officer [FTZ Manual, Section 1.5]. Port of Entry – A port of entry in the United States, as defined by part 101 of the regulations of Customs (19 CFR Part 101), or a user fee airport authorized under 19 USC 58b and listed in part 122 of the regulations of Customs (19 CFR Part 122) [15 CFR 400.2]. Privileged Foreign Status (PF) – Merchandise subject to tariff classification according to its character, condition and quantity at the rate of duty and tax in force on the date of filing the CBPF 214. In other words, a status that, upon proper application and approval anytime preceding manufacture or manipulation within a zone, is granted to an imported input, allowing P a g e | 24 the zone user the privilege of treating the input, for tariff purposes, as remaining in its original condition at the time of admission to the zone [19 CFR 146.41; 146.65(a)(1); FTZ Manual, Section 5.5]. Once established, Privileged Foreign status cannot be changed except in the case of recoverable waste (see 19 CFR 146.42). PF merchandise may be exported or withdrawn for supplies, equipment, or repair material of vessels or aircraft without the payment of taxes and duties in accordance CFR 146.67 and 146.99. Prohibited Merchandise/Operations – Merchandise that is prohibited by law to be imported on grounds of public policy or morals, or any merchandise that is excluded from a zone by order of the Board. Books urging treason or insurrection against the U.S., obscene pictures, and lottery tickets are examples of Prohibited Merchandise [19 CFR 146.1(b)]. Prohibited operations include, but are not limited to, manufacturing of alcohol products, tobacco products and firearms. Any activities determined by federal, state, or local authorities to be detrimental to the public health and safety, and retail trade are not permitted in a zone. Property Owner Agreement – Prior to FTZ designation of any site, an agreement between the property owner of the proposed site and the grantee will be executed. Quota Control – Foreign merchandise subject to U.S. Government import quota controls may be placed in the FTZ pending approval for transfer to Customs territory, re-export to a foreign destination, manipulation, or other authorized purposes. Restricted Merchandise/Operations – Merchandise that may not be authorized for delivery from Customs’ custody without a special permit, or a waiver thereof, by an agency of the U.S. Government. Also, the Foreign-Trade Zones Board and U.S. Customs & Border Protection have restricted certain operations in a zone involving the following products: steel, textiles, sugar, petroleum products, explosives, firearms, meat processing, pigments and printers ink, tires, chain saws, golf carts, television tubes, and pistachios/nuts. The restrictions may vary on a case-by- case basis. See FTZ Manual 11.6 for more information. Reactivation – A resumption of the activated status of an entire area that was previously deactivated without any change in the operator or the area boundaries. If the boundaries are different, the action is an alteration. If the operator is different, it is a new activation. Service Area – The jurisdiction(s) within which a grantee proposes to be able to designate sites via minor boundary modifications under the ASF. Specific Identification – Method for physical inventory control in an FTZ as opposed to record identity; controlled by exact unit of merchandise, by model and number. Subzone – A site (or group of sites) established for a specific purpose. The term “zone” also applies to a subzone, unless specified otherwise [19 CFR 146.1(b); 15 CFR 400.2]. Sunset Limits – FTZ designation self-removes if there is no FTZ activity at the site before the sunset date. For magnet sites, the default sunset period is 5 years (with variation possible based on circumstances, including possible permanent designation for one magnet site). Usage-driven P a g e | 25 sites have a three-year sunset period. FTZ activity at a site during the sunset period resets the sunset date for an additional 5 years (magnet) or additional 3 years (usage-driven). Time of Admission – Generally, merchandise is admitted to a zone upon the Port Director’s signature of an application for admission, i.e., the filing of the CBPF 214 or through concurrence of the e214 [FTZ Manual, Section 6.4]. Time of Entry – Generally, merchandise is entered into the Customs territory of the United States when the appropriate Customs officer authorizes the release of the merchandise, or any part of the merchandise covered by the entry documentation [19 CFR 141.68(a)]. Total Zone Value – The total zone value shall be that price actually paid or payable to the zone seller in the transaction that caused the merchandise to be transferred from the zone. Where there is no price paid or payable, the total zone value shall be the cost of all materials and zone processing costs related to the merchandise transferred from the zone [19 CFR 146.65(b)(1)]. Transfer – To withdraw merchandise in zone status from an FTZ for consumption, transportation, exportation, warehousing, cartage or lighterage, vessel supplies and equipment, admission to another FTZ, and like purposes. Transferee – A person or entity to which right is transferred. As applied to FTZ, it refers to a transfer of the right to make entry and remove merchandise from an FTZ. Unique Identifier Number (UIN) – A material UIN will be the product identification number for a specific material. “Unique identifier” means the numbers, letters, or combination of numbers and letters that identify merchandise admitted to a zone with zone status [19 CFR 146.1(b)(2)]. The UIN will be used in the FTZ accounting system and for inventory purposes. The relief of merchandise from a UIN layer in the FTZ accounting system is what triggers duty payment for companies operating in an FTZ. United States – The United States, District of Columbia, and Puerto Rico. The term “United States” includes all territories and possessions of the United States, except the U.S. Virgin Islands, Guam, American Samoa, Wake Island, Midway Islands, and Johnston Atoll. Usage-Driven Site – A site tied to a single operator or user under the Foreign-Trade Zones Board’s Alternative Site Framework (ASF). User – A party using a zone under agreement with the zone operator [15 CFR 400.2]. An Operator may also be a User. Waste and Scrap – That which must be measured (in additional to by-products) to account for the difference between input and output to and from a zone. Waste may be recoverable and attributed to non-privileged status under certain circumstances [FTZ Manual, Section 5.6(b)]. Weekly Entry Summary – The entry document, executed on CBPF 7501, of the actual entries into the Customs territory of the United States. The CBPF 7501 will identify the actual quantity, P a g e | 26 value, and HTS for the product entered. “Entry Summary” means any other documentation necessary to enable Customs to assess duties and collect statistics on imported merchandise and determine whether other requirements of law or regulation are met [19 CFR 141.0a(b); FTZ Manual, Section 9.8(c)]. Zone – A foreign trade zone established under the provisions of the FTZ Act and regulations. The term also includes subzones unless the context indicates otherwise [15 CFR 400.2]. Zone Inventory System(s) (ZIS) – Automated, non-automated, or combination inventory control and recordkeeping system(s) used for operation of a zone. ZIS is referred to by Customs as ICRS or inventory control and recordkeeping system(s). Zone Plan – Includes all the zone sites that a single grantee is authorized to establish [15 CFR 400.2]. Zone Restricted Status (ZR) – Merchandise taken into a zone for the sole purpose of exportation, destruction (except destruction of distilled spirits, wines, and fermented malt liquors), or storage will be given Zone Restricted status on proper application. ZR status can be requested at any time that the merchandise is located in the zone but cannot be abandoned once granted except by order of the Board. Merchandise in Zone Restricted status may not be removed to Customs territory for domestic consumption except where the Board determines the return to be in the public interest [19 CR 146.44(a)]. Zone Site – The physical location of a zone or subzone. A site is composed of one or more generally contiguous parcels of land organized and functioning as an integrated unit, such as all or part of an industrial park or airport facility. Zone Status – The legal status of merchandise that has been admitted to an FTZ, thereby becoming subject to the provisions of the FTZ Act. Zone status distinguishes between merchandise which has already cleared Customs or is a product of the United States (domestic status) and merchandise which was imported and has not yet cleared Customs (non-privileged and privileged foreign status) or is being held in a zone pending exportation or destruction (zone restricted status). The choice of which type of zone status is applicable to merchandise is, to a large extent, at the option of the applicant for admission or the owner of merchandise in the FTZ. However, in some cases, the type of status is dictated by law because of the definition of the status in the U.S. Customs regulations, the operation of other laws in conjunction with the FTZ Act, or special condition in the FTZ grant. Zone-to-Zone Transfer – Merchandise transferred from one zone in a port to another zone in that same port or to a zone within a different port. Each type of transfer requires different reports and procedures as specified in 19 CFR 146.66. Zone Week – The user’s business week for FTZ weekly entry reporting purposes. Zone Year – The operator’s business year to CBP annual reconciliation and systems review purposes. RESOLUTION NO. RS-2023-____ (Approve and Authorize Submission of Application for Reorganization of Foreign Trade Zone No. 255 in Washington County, Maryland, from Traditional Site Framework to Alternative Site Framework) Recitals By Grant of Authority from the Foreign Trade Zones Board dated July 3, 2002, the Board of County Commissioners of Washington County, Maryland, was granted the privilege of establishing Foreign Trade Zone No. 255. The Grant of Authority was issued pursuant to the Foreign Trade Zones Act of 1934 under the Traditional Site Framework. On January 5, 2009, the Foreign Trade Zones Board adopted a proposal to make available an alternative framework to the Traditional Site Framework for designating and managing general purpose Foreign Trade Zone sites. The alternative framework is known as the Alternative Site Framework under which grantees who function pursuant to the Traditional Site Framework may choose to participate. The Alternative Site Framework reduces fees for prospective zone users and generally streamlines application procedures and processing times in comparison to the Traditional Site Framework under which Foreign Trade Zone No. 255 was originally organized and is currently organized. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF WASHINGTON COUNTY, MARYLAND, that the proposed application to reorganize Foreign Trade Zone No. 255 under the Alternative Site Framework be submitted to the Foreign Trade Zones Board with the full approval and endorsement of the Board of County Commissioners of Washington County, Maryland. NOW, THEREFORE, BE IT FURTHER RESOLVED, that Jonathan Horowitz, Director of the Department of Business Development, be and is hereby authorized to execute the application for reorganization of Foreign Trade Zone No. 255 under the Alternative Site Framework, together with all other documents necessary for the completion and submission of the application and the implementation of the reorganization of Foreign Trade Zone No. 255. Adopted and effective this ____ day of February, 2023. ATTEST: BOARD OF COUNTY COMMISSIONERS OF WASHINGTON COUNTY, MARYLAND _____________________________ ___________________________________________ Kirk C. Downey, County Attorney John F. Barr, President Approved as to form and legal sufficiency: ____________________________ Kendall A. Desaulniers Deputy County Attorney Mail to: Office of the County Attorney 100 W. Washington Street, Suite 1101 Hagerstown, MD 21740 Open Session Item SUBJECT: Presentation of the 2024-2033 Capital Budget – Draft 1 PRESENTATION DATE: February 14, 2023 PRESENTATION BY: Michelle Gordon, Chief Financial Officer; Kelcee Mace, Deputy Director of Budget & Finance RECOMMENDED MOTION: For informational purposes. REPORT-IN-BRIEF: Discussion of Draft 1 of the FY2024-2033 Capital Budget. DISCUSSION: A Ten-Year Capital Improvement Plan is developed each fiscal year and includes scheduling and financing of future community facilities such as public buildings, roads, bridges, parks, water and sewer projects, and educational facilities. The plan is flexible and covers ten years with the first year being the Capital Improvement Budget. Funds for each project are allocated from Federal, State, and local sources. A primary purpose of the Capital Improvement Program is to provide a means for coordinating and consolidating all departmental and agency project requests into one document. It is the CIP Committee’s responsibility to review all requests that County departments and agencies submit. All projects are ranked based on established criteria for priority ranking. Considering current and future needs, as developed in the ten-year plan, available funding sources, and the results of the priority ranking process, the CIP Committee determines which capital projects best meet established criteria for the current fiscal year Capital Improvement Budget and the nine-year forecast. Not all projects can be funded due to limited resources. FISCAL IMPACT: FY2024 Capital Budget of $55,442,000 CONCURRENCES: CIP Committee ALTERNATIVES: N/A ATTACHMENTS: PowerPoint Presentation; CIP Ten Year Detail Report AUDIO/VISUAL NEEDS: PowerPoint Board of County Commissioners of Washington County, Maryland Agenda Report Form FY2024-2033 CAPITAL BUDGET DRAFT 1 PRESENTATION CIP OVERVIEW CIP Draft 1 Presentation 2 Purpose Process •A ten‐year Capital Improvement Plan. •Scheduling and financing of future community facilities. •The plan is flexible. •The first year is the Capital Improvement Budget. •Coordinates and consolidates departmental and agency project requests into one document. •Capital requests submitted in December 2022. •Reviewed and ranked by the CIP Committee. •Capital projects that best meet established criteria. •Consideration of current and future needs, and available funding sources. •The CIP Committee Members. CIP Draft 1 Presentation 3 CIP FY24 Draft 1 Overview Project CostsTotal Funding $55.4M • Local Funding $32.7M or 59% • Grants & Contributions $22.7M or 41% Total Cost $55.4M General Government $1.4M Bridges & Drainage $2.6M Education $17.2M Parks & Recreation $0.7M Public Safety $6.5M Road Improvements $13.9M Airport Fund $9.8M Transit Fund $0.2M Solid Waste Fund $1.2M Water Quality Fund $1.9M Local Funding Assumptions – FY24 Funding Source $ million Assumptions General Fund $6.0 Assumes base of $6M per year with gradual increases Speed Camera 0.2 $250k in level funding to support Public Safety related projects Tax‐Supported Bonds 12.0 Assumes increases in future years Self‐Supported Bonds 2.1 These bonds are issued for enterprise funds and fluctuate based on need Taxes and Fees 3.2 Assumes $2M each year thereafter CIP Reserves 6.5 Use of CIP reserves built up from prior year surplus Other Internal Funds 2.7 Represents support from funds other than General Fund and fluctuate based on need Total $32.7 CIP Draft 1 Presentation 4 CIP Draft 1 Presentation 5 Debt Capacity and Affordability Worst • Interest Rate 3.50% • Revenue Growth 0.66% • FMV Increase 0.42% • Population Increase 0.17% • Change Per Capita Income -$198 Base $16M •Evaluate County’s Debt Position •Tests for Stress and Affordability •Compares County to Other Jurisdictions •Assesses Potential Impact of Bond Issuance Best • Interest Rate 5.00% • Revenue Growth 3.95% • FMV Increase 3.65% • Population Increase 0.68% • Change Per Capita Income +$1,310 • Interest Rate 3.50% • Revenue Growth 2.00% • FMV Increase 1.00% • Population Increase 0.25% • Change Per Capita Income +$800 $14M $18M CIP Draft 1 Presentation 6 CIP Draft 1 - Airport FY24 – $9.8M Ten Year Total - $41.0M • Airport is heavily grant funded, with local match in most cases being 5% • Projects are grant dependent • New projects to the plan: • T-Hangar Taxi Lanes Rehabilitation • Terminal Building Expansion CIP Draft 1 Presentation 7 CIP Draft 1 - Bridges FY24 – $2.0M Ten Year Total - $20.4M • Major Projects in FY24 • Crystal Falls Drive Bridge Completion • Keedysville Road Bridge Completion • Country Store Lane Culvert • Gardenhour Road Bridge Completion • Kretsinger Road Culvert CIP Draft 1 Presentation 8 CIP Draft 1 - Drainage FY24 – $750k Ten Year Total - $13.1M • Major Projects in FY24 • Stormwater Retrofits • Broadfording Church Road Culvert • Harpers Ferry Road Drainage, 3600 Block CIP Draft 1 Presentation 9 CIP Draft 1 – Board of Education FY24 – $14.3M Ten Year Total - $174.0M • $4M in County funds per year • Current plan assumes BOE funding the gap • $1.5M from reserves for New School design in FY24 and construction proposed to start in FY25 CIP Draft 1 Presentation 10 CIP Draft 1 – Hagerstown Community College FY24 – $2.8M Ten Year Total - $25.9M • Major Projects in FY24 • Continuation of the Second Entrance Widening • New-NACC Renovation • FY25 and beyond assumes $900K County contribution per year • Current plan assumes HCC funding the gap CIP Draft 1 Presentation 11 CIP Draft 1 – Public Libraries FY24 – $25K Ten Year Total - $15.9K • $25k for Systemic Projects • Major Project in out years – Williamsport Library Replacement • Total - $15.6M • County Request - $4.7M • $50K for a feasibility study in Prior Appropriations CIP Draft 1 Presentation 12 CIP Draft 1 – General Government FY24 – $1.4M Ten Year Total - $13.6M • Increases for systemic improvements • New Project – SWM & Watershed Services Office Building • $200K in FY24 for design • $1.1M total CIP Draft 1 Presentation 13 CIP Draft 1 – Parks and Recreation FY24 – $710K Ten Year Total - $16.7M • Program Open Space funds 90% of most projects • Major projects include: • $550K-Ag Center Indoor Multipurpose Building • $50K-Ag Center – Show Arena Floor CIP Draft 1 Presentation 14 CIP Draft 1 – Public Safety FY24 – $6.5M Ten Year Total - $63.0M • $1M PSTC Burn Building Sitework • Patrol Services Relocation • $1.1M in FY24 • $17.5M Total • PSTC Defensive Driving Track • $250K in FY24, • $2.25M Total, State Grant • PSTC Tactical Village Sitework & High Bay Storage Building $2.25M-State Grant • $1.7M in Public Safety Vehicle and Equipment Replacements CIP Draft 1 Presentation 15 CIP Draft 1 – Road Improvement FY24 – $13.9M Ten Year Total - $107.9M • 40-100% Inflation • Major Projects: • $5.0M FY24-Pavement Maintenance • $1.5M Eastern Blvd Widening Phase I • Eastern Blvd Widening Phase II • $385K FY24 • $1.0M Added to Total, Now $6.8M • Eastern Blvd at Antietam Dr • $1.0M FY24 • $1.5M Added to Total, Now $4.5M • $1.5M for Professional Blvd Extended Phase III • $3.0M for Halfway Blvd Extended • $1.3M Vehicle & Equipment Replacements CIP Draft 1 Presentation 16 CIP Draft 1 – Solid Waste FY24 – $1.2M Ten Year Total - $15.7M • New Project-40 West Landfill Pretreatment Facility • $500K in FY24 for Design • $10.6M Total • Other Major Projects • 40 West Landfill-Cell 5 Construction • $440K in FY24 for Design • $4.1M Total • $150K Crane Truck Replacement CIP Draft 1 Presentation 17 CIP Draft 1 – Transit FY24 – $165K Ten Year Total - $7.5M • Major Projects • $40K for Shuttle Vehicle • $125K for Transportation Development Plan CIP Draft 1 Presentation 18 CIP Draft 1 – Water Quality FY24 – $1.9M Ten Year Total - $34.3M • New Projects • $250K SCADA Replacement • Major Projects • $400K General Building Improvements • $790K to Replace Equipment and for System Upgrades • $200K for Vehicles and Equipment Replacements Requests/Feedback CIP Draft 1 Presentation 19 •Commissioner Requests •Feedback Thank you CIP Committee John Martirano, County Administrator Michelle Gordon, Chief Financial Officer Scott Hobbs, Director – Engineering Andrew Eshleman, Director – Public Works Jill Baker, Director – Planning & Zoning Connect with us www.washco-md.net Total Prior Appr.2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Airport Air Traffic Control Tower 7,000,000 0 700,000 0 6,300,000 0 0 0 0 0 0 0 T-Hangar 1, 2, & 3 Replacement 532,000 173,000 34,000 35,000 35,000 36,000 37,000 37,000 38,000 38,000 39,000 30,000 Airport Systemic Improvement Projects 1,282,627 99,627 378,000 405,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Airport Security System Enhancements 197,165 177,165 20,000 0 0 0 0 0 0 0 0 0 Capital Equipment - Airport 4,237,567 931,567 195,000 363,000 650,000 1,410,000 40,000 73,000 55,000 300,000 145,000 75,000 Taxiway F Rehabilitation 6,300,000 300,000 6,000,000 0 0 0 0 0 0 0 0 0 Runway 2/20 Rehabilitation 3,847,000 0 323,000 3,524,000 0 0 0 0 0 0 0 0 Runway 9/27 Lighting and Signage Replacement 1,060,000 0 1,060,000 0 0 0 0 0 0 0 0 0 Snow Removal Equipment Storage Building Expansion 3,514,000 0 0 0 0 0 300,000 0 3,214,000 0 0 0 T-Hangar Taxi Lanes Rehabilitation 1,500,000 0 150,000 1,350,000 0 0 0 0 0 0 0 0 Taxiway A Rehabilitation 4,016,000 0 335,000 0 3,681,000 0 0 0 0 0 0 0 Taxiway G Rehabilitation 1,920,000 0 0 0 0 0 0 0 192,000 0 1,728,000 0 Taxiway H Rehabilitation 1,317,000 0 0 108,000 1,209,000 0 0 0 0 0 0 0 Terminal Building Expansion 6,000,000 0 600,000 0 5,400,000 0 0 0 0 0 0 0 Airport 42,723,359 1,681,359 9,795,000 5,785,000 17,325,000 1,496,000 427,000 160,000 3,549,000 388,000 1,962,000 155,000 Bridges Bridge Inspection and Inventory 697,806 48,806 175,000 0 24,000 0 200,000 0 25,000 0 225,000 0 Crystal Falls Drive W3051 2,898,500 2,498,500 400,000 0 0 0 0 0 0 0 0 0 Keedysville Road Bridge W5651 2,964,600 2,564,600 400,000 0 0 0 0 0 0 0 0 0 Cleaning & Painting of Steel Bridges 358,000 108,000 100,000 0 0 0 0 150,000 0 0 0 0 Halfway Boulevard Bridges W0912 5,489,000 4,489,000 0 1,000,000 0 0 0 0 0 0 0 0 Country Store Lane Culvert 16/06 335,000 35,000 300,000 0 0 0 0 0 0 0 0 0 Gardenhour Road Bridge W2431 2,695,000 500,000 275,000 0 1,920,000 0 0 0 0 0 0 0 Greenspring Furnace Road Culvert 15/15 567,000 40,000 0 0 265,000 262,000 0 0 0 0 0 0 Kretsinger Road Culvert 14/01 443,000 137,000 306,000 0 0 0 0 0 0 0 0 0 Appletown Road Bridge W2184 979,000 0 0 0 0 0 0 407,000 572,000 0 0 0 Ashton Road Culvert 04/06 559,000 0 0 0 0 0 0 0 42,000 517,000 0 0 Bowie Road Culvert 405,000 0 0 0 0 0 0 405,000 0 0 0 0 Burnside Bridge Road Culvert 01/03 461,000 0 0 0 160,000 301,000 0 0 0 0 0 0 Draper Road Culvert 04/07 589,000 0 0 0 0 0 0 37,000 552,000 0 0 0 Draper Road Culvert 04/08 530,000 0 0 0 0 0 0 0 0 50,000 480,000 0 Greenbrier Road Culvert 16/14 268,000 0 0 0 0 0 0 0 0 268,000 0 0 Gruber Road Bridge 04/10 396,000 0 0 0 0 0 0 0 10,000 386,000 0 0 Harpers Ferry Road Culvert 11/02 757,000 0 0 0 115,000 642,000 0 0 0 0 0 0 Henline Road Culvert 05/05 429,000 0 0 0 0 15,000 414,000 0 0 0 0 0 Hoffman's Inn Road Culvert 05/06 313,000 0 0 0 0 0 0 313,000 0 0 0 0 Lanes Road Culvert 15/12 417,000 0 32,000 385,000 0 0 0 0 0 0 0 0 Long Hollow Road Culvert 05/07 416,000 0 0 0 66,000 350,000 0 0 0 0 0 0 Mercersburg Road Culvert 04/16 484,000 0 0 0 0 0 0 0 0 16,000 468,000 0 Mooresville Road Culvert 15/21 446,000 0 0 0 0 0 0 446,000 0 0 0 0 Poplar Grove Road Bridge W2432 1,955,000 0 0 0 0 0 0 0 0 100,000 1,855,000 0 Remsburg Road Culvert 387,000 0 0 119,000 268,000 0 0 0 0 0 0 0 Rinehart Road Culvert 14/03 465,000 0 0 0 465,000 0 0 0 0 0 0 0 Stone Masonry Bridge Repairs 270,000 0 0 0 0 0 270,000 0 0 0 0 0 Washington County, Maryland Capital Improvement 10yr Detail Fiscal Year 2024 - 2033 Draft 1 1 Total Prior Appr.2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Washington County, Maryland Capital Improvement 10yr Detail Fiscal Year 2024 - 2033 Draft 1 Taylors Landing Road Bridge W7101 1,379,000 0 0 0 0 0 0 0 0 35,000 510,000 834,000 Willow Road Culvert 05/10 323,000 0 0 0 0 0 0 151,000 172,000 0 0 0 Yarrowsburg Road Bridge W6191 2,102,000 0 0 0 0 0 0 620,000 1,482,000 0 0 0 Bridges Total 30,777,906 10,420,906 1,988,000 1,504,000 3,283,000 1,570,000 884,000 2,529,000 2,855,000 1,372,000 3,538,000 834,000 Drainage Stream Restoration at Various Locations 2,306,782 1,056,782 0 250,000 0 250,000 0 0 0 350,000 0 400,000 Stormwater Retrofits 14,594,205 5,744,205 700,000 800,000 900,000 900,000 900,000 900,000 900,000 900,000 950,000 1,000,000 Drainage Improvements at Various Locations 850,000 300,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 75,000 75,000 Broadfording Church Road Culvert 231,000 0 0 0 57,000 174,000 0 0 0 0 0 0 Draper Road Drainage Improvements 609,000 0 0 0 0 0 0 259,000 350,000 0 0 0 Fort Ritchie Dam Repairs 200,000 0 0 50,000 150,000 0 0 0 0 0 0 0 Harpers Ferry Road Drainage, 3600 Block 525,000 0 0 0 75,000 450,000 0 0 0 0 0 0 Shank Road Drainage 214,000 0 0 0 0 214,000 0 0 0 0 0 0 Trego Mountain Road Drainage 415,000 0 0 0 0 0 0 0 0 0 0 415,000 University Road Culvert 285,000 0 0 0 0 0 285,000 0 0 0 0 0 Drainage Total 20,229,987 7,100,987 750,000 1,150,000 1,232,000 2,038,000 1,235,000 1,209,000 1,300,000 1,300,000 1,025,000 1,890,000 Education Board of Education Capital Maintenance - BOE 149,435,314 19,518,314 12,791,000 15,060,000 5,152,000 11,536,000 13,915,000 13,125,000 14,033,000 14,507,000 15,218,000 14,580,000 Replacement Elementary School 44,096,000 0 1,500,000 0 19,813,000 19,833,000 2,950,000 0 0 0 0 0 Board of Education 193,531,314 19,518,314 14,291,000 15,060,000 24,965,000 31,369,000 16,865,000 13,125,000 14,033,000 14,507,000 15,218,000 14,580,000 Hagerstown Community College Second Entrance Drive Widening Project 6,979,000 5,939,000 1,040,000 0 0 0 0 0 0 0 0 0 ARCC Renovation 1,770,000 0 0 0 0 0 0 0 0 0 135,000 1,635,000 ATC Renovation 14,211,000 0 0 0 1,462,000 4,399,000 3,650,000 3,800,000 900,000 0 0 0 Campus Road & Parking Lot Overlays 1,000,000 0 0 0 0 0 0 500,000 0 500,000 0 0 Career Programs Roof Replacement 4,800,000 0 0 0 0 0 0 0 0 1,231,000 2,365,000 1,204,000 NACC Renovation 1,800,000 0 1,800,000 0 0 0 0 0 0 0 0 0 Multi-Roof Project 1,250,000 0 0 500,000 0 500,000 0 0 0 0 0 250,000 Hagerstown Community College 31,810,000 5,939,000 2,840,000 500,000 1,462,000 4,899,000 3,650,000 4,300,000 900,000 1,731,000 2,500,000 3,089,000 Public Libraries Systemic Projects - Library 426,492 76,492 25,000 25,000 30,000 30,000 35,000 35,000 40,000 40,000 45,000 45,000 Williamsport Library Replacement 15,621,000 50,000 0 0 0 634,000 1,756,000 9,717,000 3,464,000 0 0 0 Public Libraries 16,047,492 126,492 25,000 25,000 30,000 664,000 1,791,000 9,752,000 3,504,000 40,000 45,000 45,000 Education Total 241,388,806 25,583,806 17,156,000 15,585,000 26,457,000 36,932,000 22,306,000 27,177,000 18,437,000 16,278,000 17,763,000 17,714,000 General Government Cost of Bond Issuance 978,000 80,000 88,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 Systemic Improvements - Building 7,768,007 1,068,007 700,000 1,000,000 1,000,000 1,000,000 500,000 500,000 500,000 500,000 500,000 500,000 Facilities Roof Repairs 2,600,000 1,500,000 200,000 200,000 100,000 100,000 100,000 100,000 75,000 75,000 75,000 75,000 Equipment and Vehicle Wash Facility 325,000 75,000 0 250,000 0 0 0 0 0 0 0 0 Information Systems Replacement Program 1,276,653 151,653 75,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 250,000 Financial System Management & Upgrades 255,709 105,709 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 County Wireless Infrastructure 37,000 17,000 0 20,000 0 0 0 0 0 0 0 0 General - Equipment and Vehicle Replacement Program 1,936,195 936,195 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 2 Total Prior Appr.2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Washington County, Maryland Capital Improvement 10yr Detail Fiscal Year 2024 - 2033 Draft 1 Courthouse Courtroom 1 Renovation 1,300,000 0 0 0 0 0 0 0 0 150,000 1,150,000 0 Stormwater Management and Watershed Services Office Building 1,100,000 0 200,000 900,000 0 0 0 0 0 0 0 0 General Government Total 17,576,564 3,933,564 1,378,000 2,675,000 1,405,000 1,405,000 905,000 905,000 880,000 1,030,000 2,030,000 1,030,000 Parks and Recreation Black Rock Capital Equipment Program 389,618 54,618 25,000 100,000 25,000 25,000 25,000 25,000 25,000 25,000 30,000 30,000 Agriculture Education Center Indoor Multipurpose Building 8,670,000 4,050,000 550,000 1,270,000 2,800,000 0 0 0 0 0 0 0 Hardcourt Playing Surfaces 339,963 204,963 0 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Ag Center Land Development 2,198,000 198,000 0 1,000,000 1,000,000 0 0 0 0 0 0 0 Park Equipment/Surfacing Replacement, Various Locations 1,400,731 700,731 0 0 175,000 0 175,000 0 175,000 0 175,000 0 Parking Lot Repair/Overlay, Various Locations 525,896 75,896 0 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Antietam Creek Water Trail 357,000 242,000 15,000 50,000 50,000 0 0 0 0 0 0 0 Ag Center Show Area Floor 50,000 0 50,000 0 0 0 0 0 0 0 0 0 Black Rock Bunker Rehabilitation 250,000 0 0 0 250,000 0 0 0 0 0 0 0 Conococheague Creek Water Trail 310,000 0 0 0 10,000 180,000 120,000 0 0 0 0 0 Doubs Woods Disc Golf 50,000 0 0 0 0 0 0 0 0 50,000 0 0 Kemps Mill Park Trails 100,000 0 0 0 100,000 0 0 0 0 0 0 0 Marty Snook Park Multimodal Trail and Parking 700,000 0 0 0 100,000 300,000 300,000 0 0 0 0 0 Marty Snook Park Pool Renovation and Accessible Entrance 750,000 0 0 0 350,000 400,000 0 0 0 0 0 0 Mt. Briar Wetland Preserve Trails and Conservation Area 100,000 0 0 100,000 0 0 0 0 0 0 0 0 North Central County Park 5,400,000 0 0 100,000 0 500,000 800,000 800,000 800,000 800,000 800,000 800,000 Park Entrances and Security Upgrades 200,000 0 0 0 100,000 100,000 0 0 0 0 0 0 Pen Mar-Fort Ritchie-Cascade Trail Connection 290,000 0 0 50,000 120,000 0 120,000 0 0 0 0 0 Recreational Field Bleachers 70,000 0 70,000 0 0 0 0 0 0 0 0 0 Regional Park Dog Park 80,000 0 0 80,000 0 0 0 0 0 0 0 0 Parks and Recreation 22,231,208 5,526,208 710,000 2,815,000 5,145,000 1,570,000 1,605,000 890,000 1,065,000 940,000 1,070,000 895,000 Public Safety Detention Center - Systemic Projects 5,272,173 872,173 190,000 700,000 700,000 450,000 500,000 500,000 500,000 550,000 60,000 250,000 Burn Building - PSTC Training Center 2,500,000 1,500,000 1,000,000 0 0 0 0 0 0 0 0 0 Patrol Services Relocation Renovation 17,500,000 500,000 1,100,000 2,900,000 3,000,000 3,000,000 2,000,000 4,000,000 1,000,000 0 0 0 Communication Tower(s) Various 576,806 266,806 90,000 0 110,000 0 110,000 0 0 0 0 0 P25 UHF Public Safety Radio Communications System Upgrade 12,600,000 11,075,000 0 1,525,000 0 0 0 0 0 0 0 0 Portable Radio Replacement Program - Sheriff 1,320,105 114,105 114,000 116,000 118,000 120,000 120,000 122,000 122,000 124,000 124,000 126,000 Portable Radio Replacement Program - Emergency Services 4,435,000 2,435,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Law Enforcement - Vehicle & Equipment Replacement Program 13,274,053 2,065,053 1,129,000 1,000,000 1,030,000 1,060,000 1,090,000 1,120,000 1,150,000 1,180,000 1,210,000 1,240,000 Emergency Services Equipment & Vehicle Program 9,600,089 7,375,089 200,000 205,000 210,000 215,000 220,000 225,000 230,000 235,000 240,000 245,000 Canteen/Rehab Unit Replacement 534,000 90,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 30,000 30,000 Incident Safety Officer Vehicle Replacement Program 176,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 Police Indoor Firing Range 750,000 0 0 0 0 0 0 0 0 250,000 250,000 250,000 PSTC Apparatus Operator / Defensive Driving Track 2,250,000 0 250,000 2,000,000 0 0 0 0 0 0 0 0 PSTC Tactical Village / Simulation Training Area 16,750,000 0 2,250,000 0 0 0 0 0 1,960,000 4,043,000 4,143,000 4,354,000 911 Center Building Expansion 1,800,000 0 0 0 0 0 0 0 0 528,000 1,272,000 0 Public Safety 89,338,226 26,309,226 6,587,000 8,710,000 5,432,000 5,109,000 4,304,000 6,231,000 5,226,000 7,174,000 7,545,000 6,711,000 Railroad Railroad Crossing Improvements 2,082,450 936,450 0 0 0 200,000 0 250,000 0 300,000 0 396,000 Railroad 2,082,450 936,450 0 0 0 200,000 0 250,000 0 300,000 0 396,000 3 Total Prior Appr.2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Washington County, Maryland Capital Improvement 10yr Detail Fiscal Year 2024 - 2033 Draft 1 Road Improvement Intersection & Signal Improvements 2,770,177 520,177 0 750,000 0 0 750,000 0 0 750,000 0 0 Transportation ADA 1,776,774 376,774 100,000 500,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Pavement Maintenance and Rehab Program 67,141,399 9,141,399 5,000,000 5,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 Longmeadow Road 2,105,000 0 0 0 310,000 432,000 518,000 845,000 0 0 0 0 Eastern Boulevard Extended 10,603,000 0 0 0 359,000 1,970,000 2,700,000 3,324,000 2,250,000 0 0 0 Eastern Blvd Widening Phase I 10,467,100 8,967,100 1,500,000 0 0 0 0 0 0 0 0 0 Eastern Boulevard Widening Phase II 6,772,300 2,691,300 385,000 1,274,000 2,422,000 0 0 0 0 0 0 0 Eastern Blvd at Antietam Drive Improvements 4,506,000 3,006,000 1,000,000 500,000 0 0 0 0 0 0 0 0 Professional Boulevard Extended Phase III 3,353,000 1,853,000 1,500,000 0 0 0 0 0 0 0 0 0 Halfway Boulevard Extended 9,473,000 6,473,000 3,000,000 0 0 0 0 0 0 0 0 0 Wright Road 3,948,000 2,673,000 125,000 650,000 500,000 0 0 0 0 0 0 0 Burnside Bridge Road Spot Improvements 544,000 0 0 0 0 0 544,000 0 0 0 0 0 E. Oak Ridge Drive/South Pointe Signal 461,000 0 0 0 0 0 461,000 0 0 0 0 0 Mt Aetna Road Spot Improvements 2,422,000 0 0 0 0 0 0 0 935,000 1,487,000 0 0 Robinwood Drive Sidewalk Extension 750,000 0 0 0 0 250,000 500,000 0 0 0 0 0 Rockdale Road and Independence Road Spot Improvements 1,025,000 0 0 0 0 0 0 0 0 450,000 575,000 0 Sandstone Drive Spot Improvements 500,000 0 0 0 0 0 0 0 500,000 0 0 0 Highway - Vehicle & Equipment Replacement Program 17,233,161 2,298,161 1,284,000 1,213,000 1,280,000 1,350,000 1,424,000 1,502,000 1,585,000 1,672,000 1,764,000 1,861,000 Road Improvement 145,850,911 37,999,911 13,894,000 9,887,000 10,971,000 10,102,000 12,997,000 11,771,000 11,370,000 10,459,000 8,439,000 7,961,000 Solid Waste Contingency - Solid Waste 604,042 64,042 30,000 35,000 35,000 60,000 60,000 62,000 63,000 64,000 65,000 66,000 SW Equipment & Vehicle Replacement 430,674 72,674 34,000 34,000 35,000 35,000 35,000 35,000 35,000 35,000 40,000 40,000 40 West Landfill - Cell 5 Construction 4,083,000 0 440,000 3,472,000 171,000 0 0 0 0 0 0 0 40 West Landfill Pretreatment Facility 10,600,000 0 500,000 5,100,000 5,000,000 0 0 0 0 0 0 0 Mechanics Crane Truck Replacement 150,000 0 150,000 0 0 0 0 0 0 0 0 0 Solid Waste 15,867,716 136,716 1,154,000 8,641,000 5,241,000 95,000 95,000 97,000 98,000 99,000 105,000 106,000 Transit Vehicle Preventive Maintenance 3,495,307 495,307 0 0 375,000 375,000 375,000 375,000 375,000 375,000 375,000 375,000 Fixed Route Bus Replacement Program 5,842,317 2,242,317 0 0 0 900,000 0 0 0 0 0 2,700,000 ADA Bus Replacement 632,305 2,305 0 0 105,000 0 210,000 0 0 105,000 0 210,000 Support Vehicles 113,848 73,848 40,000 0 0 0 0 0 0 0 0 0 Transportation Development Plan 225,000 0 125,000 0 0 0 0 100,000 0 0 0 0 Transit 10,308,777 2,813,777 165,000 0 480,000 1,275,000 585,000 475,000 375,000 480,000 375,000 3,285,000 Water Quality Utility Administration Contingency - Utility Admin 172,177 44,177 0 0 0 0 0 0 31,000 32,000 32,000 33,000 General Building Improvements 964,000 70,000 400,000 494,000 0 0 0 0 0 0 0 0 Lab Equipment Replacement 436,117 185,117 30,000 23,000 24,000 24,000 25,000 25,000 25,000 25,000 25,000 25,000 WQ Equip/Vehicle Replacement Program 1,194,162 289,162 80,000 85,000 85,000 90,000 90,000 95,000 95,000 95,000 95,000 95,000 SCADA Replacement 250,000 0 250,000 0 0 0 0 0 0 0 0 0 Utility Administration 3,016,456 588,456 760,000 602,000 109,000 114,000 115,000 120,000 151,000 152,000 152,000 153,000 4 Total Prior Appr.2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Washington County, Maryland Capital Improvement 10yr Detail Fiscal Year 2024 - 2033 Draft 1 Sewer Contingency - Sewer 226,939 26,939 0 0 0 0 0 0 50,000 50,000 50,000 50,000 Replace Grinder Pumps 1,190,000 125,000 125,000 125,000 125,000 125,000 90,000 95,000 95,000 95,000 95,000 95,000 Pump Station Upgrades - Various Stations 5,755,447 2,320,447 100,000 200,000 885,000 0 750,000 0 750,000 0 750,000 0 Collection System Rehabilitation Project 3,976,121 156,121 0 670,000 0 900,000 0 750,000 0 750,000 0 750,000 Sandy Hook Collection System Upgrades 175,000 125,000 25,000 25,000 0 0 0 0 0 0 0 0 Smithsburg WWTP ENR Upgrade 26,881,087 11,381,087 0 0 0 0 0 0 5,500,000 5,000,000 5,000,000 0 General WwTP Improvements 1,122,500 22,500 250,000 300,000 250,000 300,000 0 0 0 0 0 0 Heavy Sewer EQP and VEH Replacement 1,280,807 345,807 200,000 200,000 200,000 105,000 35,000 35,000 40,000 40,000 40,000 40,000 Potomac Edison Pump Station & Force Main 1,700,000 0 0 0 0 0 1,700,000 0 0 0 0 0 Sewer Fund 42,307,901 14,502,901 700,000 1,520,000 1,460,000 1,430,000 2,575,000 880,000 6,435,000 5,935,000 5,935,000 935,000 Water Sharpsburg Water Meter Cradle Replacement 1,000,000 1,000,000 0 0 0 0 0 0 0 0 0 0 Water Meter Replacement 293,239 143,239 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 WQ Main Replacement 2,366,000 566,000 100,000 100,000 0 0 100,000 0 500,000 500,000 500,000 0 Sharpsburg Water Treatment Plant 645,336 55,336 0 0 590,000 0 0 0 0 0 0 0 General WTP Improvements 1,434,342 254,342 290,000 0 0 290,000 0 0 250,000 250,000 0 100,000 Highfield/Sharpsburg Water Storage Tank 336,000 0 0 0 0 0 0 0 336,000 0 0 0 Water Fund 6,074,917 2,018,917 405,000 115,000 605,000 305,000 115,000 15,000 1,101,000 765,000 515,000 115,000 Water Quality 51,399,274 17,110,274 1,865,000 2,237,000 2,174,000 1,849,000 2,805,000 1,015,000 7,687,000 6,852,000 6,602,000 1,203,000 TOTAL 689,775,184 139,553,184 55,442,000 58,989,000 79,145,000 63,641,000 48,148,000 52,709,000 52,842,000 46,672,000 50,454,000 42,180,000 5 Total Prior Appr.2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Washington County, Maryland Capital Improvement 10yr Detail Fiscal Year 2024 - 2033 Draft 1 Funding Sources General Fund 108,887,408 40,137,408 6,250,000 6,500,000 6,500,000 6,750,000 6,750,000 7,000,000 7,000,000 7,250,000 7,250,000 7,500,000 Highway Fund 5,319,000 319,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 Cascade Fund 12,342 12,342 0 0 0 0 0 0 0 0 0 0 Solid Waste Fund 1,145,042 97,042 214,000 69,000 70,000 95,000 95,000 97,000 98,000 99,000 105,000 106,000 Utility Admin Fund 2,070,056 536,056 360,000 108,000 109,000 114,000 115,000 120,000 151,000 152,000 152,000 153,000 Water Fund 743,239 268,239 340,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Sewer Fund 4,594,116 2,344,116 350,000 350,000 325,000 230,000 125,000 130,000 185,000 185,000 185,000 185,000 Airport Fund 3,957,860 461,860 951,000 785,000 627,000 157,000 157,000 107,000 271,000 103,000 183,000 155,000 Tax-Supported Bond 164,383,128 27,383,128 12,000,000 13,000,000 14,000,000 14,000,000 14,000,000 14,000,000 14,000,000 14,000,000 14,000,000 14,000,000 Self-Supported Bond 48,410,951 6,022,951 2,055,000 10,011,000 6,896,000 1,175,000 825,000 490,000 7,336,000 6,500,000 6,250,000 850,000 State Loan 3,972,170 3,972,170 0 0 0 0 0 0 0 0 0 0 Transfer Tax 26,002,606 5,002,606 3,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Excise Tax - Schools 1,487,031 567,031 0 0 385,000 385,000 150,000 0 0 0 0 0 Excise Tax - Roads 1,747,620 487,620 126,000 126,000 126,000 126,000 126,000 126,000 126,000 126,000 126,000 126,000 Excise Tax - Other 319,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 Excise Tax - Library 110,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Excise Tax - Non-Residential 854,473 354,473 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 APFO Fees - Roads 405,644 405,644 0 0 0 0 0 0 0 0 0 0 Capital Reserve - General 35,096,000 1,122,000 6,500,000 2,893,000 6,865,000 2,624,000 2,747,000 4,696,000 2,930,000 2,777,000 1,942,000 0 Capital Reserve - Transfer Tax 5,795,000 500,000 0 915,000 1,380,000 1,000,000 0 2,000,000 0 0 0 0 Capital Reserve - Excise Tax - Schools 1,770,000 0 0 0 770,000 1,000,000 0 0 0 0 0 0 Capital Reserve - Excise Tax - Non-Residential 5,797,812 272,812 0 1,525,000 1,000,000 3,000,000 0 0 0 0 0 0 Capital Reserve - Excise Tax - Non-Residential 1,000,000 0 0 0 0 1,000,000 0 0 0 0 0 0 Federal Grant 77,423,034 27,440,034 9,502,000 5,464,000 18,091,000 2,619,000 1,224,000 1,106,000 4,730,000 834,000 3,605,000 2,808,000 State Grant 183,923,437 20,685,437 12,160,000 14,639,000 19,147,000 26,733,000 17,404,000 19,957,000 13,411,000 12,042,000 14,052,000 13,693,000 Contributions 4,548,215 1,122,215 1,045,000 0 250,000 29,000 1,826,000 276,000 0 0 0 0 TOTAL 689,775,184 139,553,184 55,442,000 58,989,000 79,145,000 63,641,000 48,148,000 52,709,000 52,842,000 46,672,000 50,454,000 42,180,000 6