Marvin Mandel, Governor                            531

of proposed project or projects to be furnished and the proposed
boundaries of the area within which a project or projects is
requested.

(b) As soon as possible after the receipt of a duly authorized
request from a municipality or person, the Service shall draft a pro-
posed contract with the municipality or person in accordance with
the provisions of this Article specifying the type of project to be
provided, the boundaries of a, service district, the effective date
the service district will come into existence, and the terms , CON-
DITIONS, AND COSTS under which the project would be provided.
Upon execution of the contract, the Service shall as soon as possible
establish a service district and provide, maintain, and operate the
necessary project or projects.

(c) If a requested project is included in the approved county
water and sewerage plan adopted in compliance with Article 43,

Section 387C of the Annotated Code of Maryland, the project shall

be eligible for Federal and State grants, and the cost levied against

the service district shall be reduced by the full amount of Federal

and State grants received by the Service for this purpose. If the

requested project is not included in the county water and sewerage

plan, the project shall be ineligible for Federal and State grants,

and the full cost shall be the cost levied by Service against the

service district.

(C) THE COST LEVIED AGAINST A SERVICE DISTRICT
SHALL BE REDUCED BY THE FULL AMOUNT OF FEDERAL
AND STATE GRANTS WHICH THE SERVICE RECEIVES AND
IS ENTITLED TO RETAIN TO DEFRAY THE COST OF ANY
PROJECT WITHIN THE SERVICE DISTRICT.

(d)    Existing facilities providing service of the type requested,
including all rights, easements, laboratory facilities, vehicles, records,
and all other property, equipment, and furnishings necessary and
normally associated with the operation of the facility, shall be
transferred to the sole ownership of the Service on the effective date
THAT THE SERVICE DISTRICT COMES INTO EXISTENCE.

on terms and conditions satisfactory to the Service and the munici-

pality or person transferring the facility. COMPENSATION FOR
EXISTING PROJECTS MAY BE BASED ON THE ORIGINAL
COST OF THE PROJECT MINUS AN ALLOWANCE FOR DE-
PRECIATION, OR ON OTHER TERMS AND CONDITIONS SAT-
ISFACTORY TO THE MUNICIPALITY OR PERSON TRANS-
FERRING THE PROJECT. All costs and obligations assumed by
the Service incidental to the transfer of ownership shall be included
in the charges levied against the service district.

(e)    At the request of any person or municipality having the
responsibility for the collection of liquid waste or solid waste, the
Service may enter into a contract to provide management and opera-
tion of waste collection services in any service district as an adjunct
to the mandatory provision of projects as set forth in subsections
(a) through (d) of this section, if (1) as a condition to the pro-
vision of management and operation of waste collection services, the
municipality or person enters into a contract upon terms the Service
determines reasonable; and (2) the Service and the municipality or
person requesting collection services determines by agreement from
time to time the charges including the amount and frequency of pay-
ments to the Service.