WILLIAM DONALD SCHAEFER, Governor                    Ch. 815

established, the boundaries and effective date of any service
district, and the terms, conditions, and costs under which the
project will be provided. Upon execution of the contract, the
service as soon as possible shall establish any service district
provided for in the contract and provide, maintain, and operate
the necessary project.

(c)  The charges 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 date a service district comes
into existence UNLESS THE SERVICE DETERMINES THAT IT NOT BE SO
TRANSFERRED. Compensation for existing projects may be based on
the original cost of the project minus an allowance for
depreciation, or on other terms and conditions satisfactory to
the municipality or person transferring the project. All costs
and obligations assumed by the Service incidental to the transfer
of ownership shall be included in the charge 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
operation 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 provision 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 payments to the service.

[3-109.] 3-108.

(a) In calculating charges for water supply and waste
management contracts and in determining the local costs to be
levied against a service district established pursuant to this
subtitle, the Service shall require that the charges reflect the
full costs of projects. The charges and costs to be levied
against any particular municipality or person located within a
service district shall take account of the value and capacity of
any existing facility transferred by the municipality or person
to the Service, and the costs and obligations assumed by the
Service incidental to the transfer of the facility. To the extent
deemed reasonable and practicable by the Service, charges for

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