6a Wastewater Merger & Regionalization Feasibility Study B - Town of Hertford, NC 03/07/2025 WithersRavene! 115 MacKenan Drive www.wtnersavene.com Our People. Your Success. Cary, NC: 27511 TABLE OF CONTENTS Introduction. 1 Overview. 2 Option A - Status Quo 3 Option B - Winfall Merge with Hertford. 11 Funding Opportunities. 17 Conclusions 18 TABLES AND CHARTS Table 1 Hertford Capital Improvements Plan 4 Table 2 Hertford Financial Analysis - Do Nothing Alternative 7 Table 3 Hertford Proposed Revenue Increases - Do Nothing Alternative 8 Table 4 Winfall Financial Analysis - Do Nothing Alternative 9 Table 5 Winfall Proposed Revenue Increases = Do Nothing Alternative 10 Table 6 Hertford Financial Analysis Acquire Winfall Sewer Program : 13 Table 7 Winfall Financial Analysis - Merge with Hertford Sewer 15 ii Town of Hertford Wastewater Merger Regionalization Feasibility Study Introduction The Town of Hertford was awarded a North Carolina Wastewater Merger / Regionalization Feasibility Grant (MRF) to understand the feasibility of taking full ownership of the Town of Winfall's sewer collection system, while providing safe and reliable service at the lowest cost to its customers and those in Winfall. Since Hertford combines its water and sewer programs into one (1) fund, the study reviews the entire fund. However, the Town of Winfall's sewer program is recorded and managed in a separate fund from its water program. The study only focuses on the Winfall sewer fund and considers the effects of a possible acquisition by Hertford. In conducting this study, WithersRavene: examined the past and present financial reports from each town, reviewed previously prepared studies, and projected future financial needs of each. The following considerations were identified for the study: Review the past and current financial status of each municipality's utility programs. Project the financial needs of each program over the next five (5) years. Determine each program's future capital needs. Review the feasibility of completely merging the Town of Winfall's sewer system with the Town of Hertford, a larger utility, while considering the key factors such as operation, reliability, customer service, financial requirements, and operational standing. Evaluate the financial impact of each option on each town's customers. Evaluate the technical, organizational, and financial challenges for the towns for each option. Certain assumptions have been made with respect to conditions that may occur in the future. While these assumptions are reasonable for the purposes of this study, they are dependent upon future events and actual conditions may differ from those assumed. In addition, information has been used and relied upon which has been provided by others. This information includes, among other things, audited financial statements, annual operating budgets, and capital improvement plans. While this information is deemed reliable, the information has not been independently verified, and no assurances are offered with respect thereto. To the extent that actual future conditions differ from those assumed herein or are provided by others, the actual results may differ from those anticipated. This analysis addresses each system's infrastructure, revenue requirements, future capital needs, debt service requirements, and presents a financial analysis, findings, and outcomes of each alternative. Page 1 Town of Hertford Wastewater Merger Regionalization Feasibility Study Overview Town of Hertford The Town of Hertford, in Perquimans County, has a population of 2,133 with 878 residential and 140 non-residential connections to its wastewater system, according to the 2023 Local Water Supply Plan. The sewer distribution system is difficult for the Town to maintain because of aging infrastructure, infiltration and inflow, excess treatment capacity, nadequate revenue, and minimal staff to perform needed maintenance. In June 2021, the Town of Winfall approached Hertford, to offer ownership of their sewer collection system. Winfall's sewer system has been connected to Hertford for sewer treatment since 2001. Hertford has many ongoing challenges in its sewer system yet has much greater capacity to operate and manage a utility than Winfall, which lies just to the north across the Perquimans River. Hertford lacks detailed information about Winfall's collection system, particularly condition assessment or details of maintenance and repairs, but has a record of significant inflow and infiltration from Winfall's interconnect that regularly exceeds Winfall's allotted 0.1 MGD capacity. Town of Winfall The Town of Winfall approached Hertford in 2021 about merging the two (2) systems, as it has a working relationship with the Town of Hertford for treatment. Winfall has sent its wastewater to Hertford since 2001 for treatment. The Town of Winfall has a population of 618 with 145 wastewater connections. While Winfall has a contract with Hertford for 0.1 MGD, they reguiarly exceed that amount with an average of 0.124 MGD according to the 2023 Local Water Supply Plan. Water service is provided by Perquimans County. Page 2 Town of Hertford Wastewater Merger Regionalization Feasibility Study Option A = Status Quo Consideration must be given to the possibility that a merger may not occur due to financial, economic, or political challenges, or a combination thereof. This possibility should be acknowledged, and the potential impacts of the status quo explored. In the following section, the impact on Winfall as a partner in maintaining the status quo is examined. Overall, maintaining the status quo does not move the Town of Hertford toward a stronger, more viable wastewater system. The burden of an aged infrastructure coupled with ongoing operations and maintenance will remain with a smaller, concentrated group who are unlikely to be able to shoulder the financial burden long term. This plan will need to address the existing aging infrastructure and wastewater treatment concerns within the system. Infrastructure Impacts Town of Hertford The Town of Hertford would continue to own and operate the Town's existing collection system, including the wastewater treatment plant with a permitted capacity. Town of Winfall The Town of Winfall is not impacted with this option. Financial Impacts In analyzing the financial status of each of the entities incorporated in this study, the following financial assumptions are used and are consistently applied to each entity: Natural revenue growth for Hertford is flat as population projections are projected to be level. Expenses are anticipated to increase by average annual rates between 4% and 6% annually. Hertford's Capital Improvement Plan (CIP) was enhanced from the recent Asset and Inventory Assessment Grant and combined with other known projects previously identified by Town staff. It will be funded using grants, earmarks, American Rescue Plan Act funds, and cash on hand, as shown in Table 1. In the absence of a current CIP for Winfall, depreciation from the most recent audit is utilized as a placeholder for annual capital expenses. Page 3 8 E 8 8 8 a 3 3 8 8 8 3 - a a 21 a à oi - o o o E e a 5 a 3 E a E a - B 8 8 3 8 B - a 8 - a - a M - I E E - : Town of Hertford Wastewater Merger Regionalization Feasibility Study Town of Hertford The Town of Hertford operated its utility with an annual net loss for three (3) of the last six (6) audited years. Based on the assumptions utilized in this analysis, expenses for the utility will continue to outpace revenue when considering capital expenses needed. The need to begin to achieve a positive net income, maintain an adequate net position, and pay for capital improvements results in the Town needing a revenue increase of 7% annually, as depicted in Table 2. Page 6 TABLE 2 HERTFORD WATER AND SEWER FUND FINANCIAL ANALYSIS STATUS QUO YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 2026 2027 2028 2029 2030 REVENUES CHARGES FOR SERVICES WATER 817,173 817,173 817,173 817,173 817,173 SEWER 1,418,166 1,418,166 1,418,166 1,418,166 1,418,166 WINFALL CHARGES 144,000 144,000 144,000 144,000 144,000 WATER & SEWER TAPS 1,025 1,025 1,025 1,025 1,025 MISCELLANEOUS SEWER 8,324 8,324 8,324 8,324 8,324 TOTAL OPERATING REVENUE 2,388,688 2,388,688 2,388,688 2,388,688 2,388,688 NON OPERATING REVENUE: INVESTMENT EARNINGS 22,927 27,725 33,121 41,772 57,763 TOTAL PRESENT REVENUES 2,411,615 2,416,413 2,421,809 2,430,460 2,446,451 NEW SOURCES OF REVENUE: REVENUE FROM WATER REVENUE INCREASES 57,202 118,408 183,899 253,974 328,955 PROJECTED RATE OF INCREASE 7.0% 7.0% 7.0% 7.0% 7.0% REVENUE FROM SEWER REVENUE INCREASES 109,352 226,358 351,554 485,515 628,853 PROJECTED RATE OF INCREASE 7.0% 7.0% 7.0% 7.0% 7.0% TOTAL REVENUES 2,578,168 2,761,180 2,957,263 3,169,949 3,404,258 EXPENDITURES SALARIES AND BENEFITS 651,631 690,728 732,172 776,103 822,669 VEHICLE EXPENSE 84,480 87,859 91,373 95,028 98,829 MATERIAL AND SUPPLIES 157,254 163,544 170,086 176,889 183,964 MAINTENANCE AND REPAIRS 30,630 32,467 34,415 36,480 38,669 OTHER OPERATING EXPENSES 365,142 379,748 394,937 410,735 427,164 UTILITY FEES 188,362 195,897 203,732 211,882 220,357 INSURANCE 33.280 34,611 35,996 37,435 38,933 TOTAL OPERATING EXPENDITURES 1,510,777 1,584,854 1,662,712 1,744,552 1,830,586 CAPITAL OUTLAY: 318,000 409.088 422,042 460.644 644,926 EXISTING DEBT PRINCIPAL 411,256 416,808 421,383 276,983 281,609 INTEREST EXPENSE 178,176 170,584 162,755 154,725 146,455 TOTAL EXPENDITURES 2,418,209 2,581,333 2,668,893 2,636,904 2,903,576 REVENUE OVER EXPENDITURES 159,960 179,846 288,370 533,045 500,683 UNRESTRICTED NET POSITION 1,218,392 1,398,239 1,686,609 2,219,653 2,720,336 UNRESTRICTED NET POSITION, / EXPENDITURES 50.38% 54.17% 63.20% 84.18% 93.69% CASH 924,183 1,104,030 1,392,400 1,925,444 2,426,127 CASH/ EXPENDITURES 38.22% 42.77% 52.17% 73.02% 83.56% Page 7 Town of Hertford Wastewater Merger Regionalization Feasibility Study An enterprise fund is expected to raise rates to pay for all expenses of the fund. Surpluses should accumulate as unrestricted net assets in preparation of funding major capital expenditures that are needed for the system to continue to operate safely. The average monthly Hertford sewer bill of $118.22 is higher than the median sewer bill of $53.66 for units within a 50-mile radius. The average bills are based on 5,000 gallons usage as of July 2024. The potential monthly increases from the revenue increases are shown in Table 3. TABLE: 3 Hertford Proposed Revenue Increases - Do Nothing Alternative Fiscal Year Potential Revenue Increase Needed Potential Monthly Increase to Customers 2026 7% $8.28 2027 7% $17.13 2028 7% $26.60 2029 7% $36.74 2030 7% $47.59 Town of Winfall The Town of Winfall operated its utility with an annual net loss three (3) of the last six (6) audited years. However, when depreciation and the lack of capital investment is considered, the program operated at a net loss all six (6) years. Based on the assumptions utilized in this analysis, expenses for the utility will continue to outpace revenue when considering more needed capital expenses. The need to begin to achieve a positive net income, maintain an adequate net position, and pay for capital improvements results in the Town needing a revenue increase of 65% in FY: 2026 and 10% annually thereafter, as depicted in Table 4. Page 8 TABLE 4 WINFALL SEWER FUND FINANCIAL ANALYSIS STATUS QUO YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 2026 2027 2028 2029 2030 REVENUES CHARGES FOR SERVICES 246,586 246,586 246,586 246,586 246,586 PENALTIES 7,954 7,954 7,954 7,954 7,954 TOTAL OPERATING REVENUE 254,540 254,540 254,540 254,540 254,540 NEW SOURCES OF REVENUE: REVENUE FROM SEWER REVENUE INCREASES 160,281 200,968 245,723 294,954 349,108 PROJECTED RATE OF INCREASE 65.0% 10.0% 10.0% 10.0% 10.0% TOTAL REVENUES 414,821 455,508 500,263 549,494 603,648 EXPENDITURES OUTSIDEI LABOR COST 30,409 32,234 34,168 36,218 38,391 CONTRACTED SERVICES 0 0 0 0 0 UTILITIES 19,318 20,090 20,894 21,730 22,599 SEWER TREATMENT CHARGES 116,511 121,172 126,018 131,059 136,302 REPAIRS. AND MAINTENANCE 23,000 23,920 24,877 25,872 26,907 OFFICE SUPPLIES 3,848 4,002 4,162 4,328 4,502 TELEPHONE 8,801 9,153 9,519 9,900 10,296 OTHER OPERATING EXPENSES 8,259 8,589 8,932 9.290 9,661 TOTAL OPERATING EXPENDITURES 210,145 219,159 228,570 238,396 248,657 CAPITAL OUTLAY 161,282 161282 151282 161,282 161282 EXISTING DEBT PRINCIPAL 27,000 27,000 27,500 28,000 28,500 INTEREST EXPENSE 12.578 11,993 11,408 10.798 10,164 TOTAL EXPENDITURES 411,005 419,434 428.760 438,477 448,603 REVENUE OVER EXPENDITURES 3,816 36,074 71,503 111,017 155,045 UNRESTRICTED: NET POSITION 94,519 130,593 202,097 313,114 468,159 UNRESTRICTED NET POSITION, / EXPENDITURES 23.00% 31.14% 47.14% 71.41% 104.36% CASH 51,975 88,049 159,553 159,553 159,553 CASH/E EXPENDITURES 12,65% 20.99% 37.21% 36.39% 35.57% Page 9 Town of Hertford Wastewater Merger Regionalization Feasibility Study An enterprise fund is expected to raise rates to pay for all expenses of the fund. Surpluses should accumulate as unrestricted net assets in preparation of funding major capital expenditures that are needed for the system to continue to operate safely. The average monthly Winfall sewer bill of $89.50i is higher than the median sewer bill of $53.66 for units within a 50-mile radius. The average bills are based on 5,000 gallons usage as of July 2024. The potential monthly increases from the revenue increases are shown in Table 5. TABLE 5 Winfall Proposed Revenue Increases - Do Nothing Alternative Fiscal Year Potential Revenue Increase Needed Potential Monthly Increase to Customers 2026 65% $58.18 2027 10% $72.94 2028 10% $89.19 2029 10% $107.06 2030 10% $126.71 Organizational Impacts Town of Hertford The Town of Hertford is not impacted by this option and is positioned organizationally to maintain the status quo. Town of Winfall The Town of Winfall is not impacted with this option and is positioned organizationally to maintain the status quo. Page 10 Town of Hertford Wastewater Merger Regionalization Feasibility Study Option B - Winfall Merge with Hertford In this option, the Town of Winfall would offer its wastewater system to the Town of Hertford at no cost. Winfall wastewater customers would become Town of Hertford wastewater customers but still pay the current Winfall rates. Infrastructure Impacts Town of Hertford The Town of Hertford would continue to own and operate its existing sewer system, and the wastewater treatment plant would continue accepting the wastewater flow from Winfall. Hertford would begin maintenance and repairs to the Winfall collection system. Town of Winfall The Town of Winfall would transfer ownership of the Town's existing collection system to the Town of Hertford. Winfall wastewater customers would become Hertford wastewater customers. The treatment of Winfall's wastewater would remain the same as it is already sent to Hertford for treatment. Additional work needs to be performed on condition assessment of Winfall's existing infrastructure SO that Hertford can get an accurate picture of the collection system. Financial Impacts In analyzing the financial status of each of the entities incorporated in this study, the following financial assumptions are used and are consistently applied to each entity: Natural revenue growth for Hertford and Winfall is flat as population projections are projected to be level. Expenses are anticipated to increase by average annual rates between 4% and 6% annually. Hertford's Capital Improvement Plan (CIP) was enhanced from the recent Asset and Inventory Assessment Grant and combined with other known projects previously identified by Town staff. It will be funded using grants, earmarks, American Rescue Plan Act funds, and cash on hand, as shown in Table 1. In the absence of a current CIP for Winfall, depreciation from the most recent audit is utilized as a placeholder for annual capital expenses. Page 11 Town of Hertford Wastewater Merger Regionalization Feasibility Study Town of Hertford With the transfer of ownership of the collection system from the Town of Winfall, the wastewater utility would no longer be the responsibility of the Town of Winfall. Bulk wastewater charges from Winfall will end and be replaced by individual customer charges. Furthermore, all charges related to Winfall operations, including labor and contracted services, will be the responsibility of Hertford. The only obligation assumed to remain with Winfall is their existing debt obligations. The projected revenue needs and rates for Hertford are expected to be unchanged and only the unrestricted net position is expected to be approximately $160,000 lower over five (5) years if the Winfall system only requires capital spending equal to its depreciation. Details are shown in Table 6. If additional capital needs are realized, additional revenues will be needed thereby making the merger option more expensive for Hertford and its customers. Page 12 TABLE 6 HERTFORD WATER AND SEWER FUND FINANCIAL ANALYSIS WINFALL MERGER YEAR 1 YEAR 2 YEAR: 3 YEAR 4 YEAR 5 2026 2027 2028 2029 2030 REVENUES CHARGES FOR SERVICES WATER 817,173 817,173 817,173 817,173 817,173 SEWER 1,418,166 1,418,166 1,418,166 1,418,166 1,418,166 WINFALL CHARGES 144,000 144,000 144,000 WINFALLS SEWER REVENUES 246,586 246,586 WATER & SEWER TAPS 1,025 1,025 1,025 1,025 1,025 MISCELLANEOUS SEWER 8,324 8,324 8,324 8,324 8,324 TOTAL OPERATING REVENUE 2,388,688 2,388,688 2,388,688 2,491,274 2,491,274 NON OPERATING REVENUE: INVESTMENT EARNINGS 22.927 27,725 33,121 41,772 53,739 TOTAL PRESENT REVENUES 2,411,615 2,416,413 2,421,809 2,533,046 2,545,013 NEW SOURCES OF REVENUE: REVENUE FROM WATER REVENUE INCREASES 57,202 118,408 183,899 253,974 328,955 PROJECTED RATE OF INCREASE 7.0% 7.0% 7.0% 7.0% 7.0% REVENUE FROM SEWER REVENUE INCREASES 109,352 226,358 351,554 517,398 670,149 PROJECTED RATE OF INCREASE 7.0% 7.0% 7.0% 7.0% 7.0% TOTALI REVENUES 2,578,168 2,761,180 2,957,263 3,304,419 3,544,116 EXPENDITURES SALARIES AND BENEFITS 651,631 690,728 732,172 776,103 822,669 VEHICLE EXPENSE 84,480 87,859 91,373 95,028 98,829 MATERIAL. ANDSUPPLIES 157,254 163,544 170,086 176,889 183,964 MAINTENANCE AND REPAIRS 30,630 32,467 34,415 36,480 38,669 OTHER OPERATING EXPENSES 365,142 379,748 394,937 410,735 427,164 UTILITY FEES 188,362 195,897 203,732 211,882 220,357 INSURANCE 33,280 34,611 35,996 37,435 38,933 VINFALLOPERATIONS 107.337 112.355 TOTAL OPERATING EXPENDITURES 1,510,777 1,584,854 1,662,712 1,851,889 1,830,586 CAPITAL OUTLAY 318,000 408,088 422,042 480644 614.926 CAPTALOUTLAYWINFALL 161.282 161,282 EXISTING DEBT PRINCIPAL 411,256 416,808 421,383 276,983 281,609 INTEREST EXPENSE 178,176 170,584 162,755 154,725 146,455 TOTAL EXPENDITURES 2,418,209 2,581,333 2,668,893 2,905,524 3,064,858 REVENUE OVER EXPENDITURES 159,960 179,846 288,370 398,895 479,258 UNRESTRICTED NET POSITION 1,218,392 1,398,239 1,686,609 2,085,504 2,564,762 NRESTRICTED NET POSITION / EXPENDITURES 50.38% 54,17% 63.20% 71.78% 83.68% CASH 924,183 1,104,030 1,392,400 1,791,295 2,270,553 CASH / EXPENDITURES 38.22% 42.77% 52.17% 61.65% 74.08% Page 13 Town of Hertford Wastewater Merger Regionalization Feasibility Study Town of Winfall The Town of Winfall is positioned to be absorbed into the Hertford wastewater system. Hertford would realize the revenues from the Winfall system. The only remaining obligation would be its existing debt obligations. The average monthly Winfall sewer bill of $76.50 is higher than the median sewer bill of $53.95 for units within a 50-mile radius. The average bills are based on 5,000 gallons usage as of February 2024. After a merger, it is assumed that Winfall customer charges would increase at the same rate as Hertford customers. Page 14 TABLE 7 WINFALL SEWER FUND MERGE WITH HERTFORD YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 2026 2027 2028 2029 2030 REVENUES CHARGES FOR SERVICES 246,586 246,586 246,586 PENALTIES 7,954 7.954 7,954 TOTAL OPERATING REVENUE 254,540 254,540 254,540 0 0 NEW SOURCES OF REVENUE: REVENUE FROM SEWER REVENUE INCREASES 160,281 200,968 245,723 0 PROJECTED RATE OF INCREASE 65.0% 10.0% 10.0% TOTAL REVENUES 414,821 455,508 500,263 0 0 EXPENDITURES OUTSIDE LABOR COST 30,409 32,234 34,168 CONTRACTED SERVICES 0 0 0 UTILITIES 19,318 20,090 20,894 SEWER TREATMENT CHARGES 116,511 121,172 126,018 REPAIRS AND MAINTENANCE 23,000 23,920 24,877 OFFICE SUPPLIES 3,848 4,002 4,162 TELEPHONE 8,801 9,153 9,519 OTHER OPERATING EXPENSES 8,259 8,589 8,932 TOTAL OPERATING EXPENDITURES 210,145 219,159 228,570 0 0 CAPITAL OUTLAY 139.249 159.249 159249 EXISTING DEBT PRINCIPAL 27,000 27,000 27,500 28,000 28,500 INTEREST EXPENSE 12.578 11,993 11,408 10,798 10,164 TOTAL EXPENDITURES 408.972 417,401 426.727 38.798 38,664 REVENUE OVER EXPENDITURES 5,849 38,107 73,536 (38,798) (38,664) UNRESTRICTED NET POSITION 96,552 134,659 208,196 169,398 130,733 UNRESTRICTED NET POSITION, / EXPENDITURES 23.61% 32.26% 48,79% 436.61% 338.12% CASH 54,008 92,115 165,652 165,652 165,652 CASH/ / EXPENDITURES 13.21% 22.07% 38.82% 426.96% 428.43% Page 15 Town of Hertford Wastewater Merger Regionalization Feasibility Study Organizational Impacts Town of Hertford The Town of Hertford is positioned to absorb the Winfall wastewater system into its existing utility structure. The Town has stated it will not need to hire additional staff for operations and maintenance. However further analysis will be needed to determine the full impact on operations and capital spending if this route were to be explored. Town of Winfall The Town of Winfall would turn over management and operations of their system to the Town of Hertford. The Town of Winfall wastewater system would not continue and would be absorbed within the Hertford system. Page 16 Town of Hertford Wastewater Merger Regionalization Feasibility Study Funding Opportunities Additional engineering analysis will be needed once a path forward is selected. The most probable funding sources dentified at the time of this report are from the following programs: Drinking Water State Revolving Fund The Drinking Water State Revolving Fund (DWSRF) was established by the 1996 amendments to the Safe Drinking Water Act (SDWA). The DWSRF is a financial assistance program to help water systems and states to achieve the health protection objectives of the Safe Drinking Water Act. The DWSRF provides low-interest loans with competitive principal forgiveness opportunities. The loan terms may not exceed 30 years or the useful life of the project. Interest rates for the loan must be at or below market rate and could include interest- free loans. United States Department of Agriculture Through Rural Utilities Service Water and Environmental Programs (WEP), rural communities obtain the technical assistance and financing necessary to develop drinking water and waste disposal systems. Safe drinking water and sanitary waste disposal systems are vital not only to public health, but also to the economic vitality of rural America. Rural Development is a leader in helping rural America improve the quality of life and increase the economic opportunities for rural people. The Water and Environmental Program provides funding for the construction of water and waste facilities in rural communities and is proud to be the only Federal program exclusively focused on rural water and waste infrastructure needs of rural communities with populations of 10,000 or less. Infrastructure Investment and Jobs Act Under the Infrastructure Investment and Jobs Act, based on the traditional state revolving fund formula, North Carolina will expect to receive $1.1 billion over five years to improve water infrastructure across the state and ensure that clean, safe drinking water is a right in all communities. Preliminary estimates indicate North Carolina will receive over $9 billion. This estimate includes approximately $440 million for clean drinking water in North Carolina through the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund will be awarded over the next five years. Page 17 Town of Hertford Wastewater Merger Regionalization Feasibility Study Conclusions This report is intended to be one component of the decision-making process the partners can use as they begin to craft decisions that move them toward a stronger, more viable sewer system for the area. The information contained within the report is best used as a guide for next steps including a thorough assessment of Winfall wastewater assets, a preliminary engineering report (PER), and pursuing funding opportunities to provide the best opportunity to work together. WithersRavenel appreciates the opportunity to support the Town of Hertford with this important feasibility study and is happy to assist Hertford and Winfall with further exploration of the preferred option and path forward. Page 18