MDTA Board Meeting Materials

BOARD MEETING

TUESDAY, NOVEMBER 25, 2025

MARYLAND TRANSPORTATION AUTHORITY 2310 BROENING HIGHWAY 2 ND FLOOR TRAINING ROOM BALTIMORE, MD 21224

IN-PERSON AND LIVESTREAM

MARYLAND TRANSPORTATION AUTHORITY BOARD MEETING 2310 Broening Highway * 2 nd Floor Training Room * Baltimore, MD 21224

NOVEMBER 25, 2025 9:00 AM

This meeting will be livestreamed on the MDTA Board Meeting Page

NOTES: •

This is an In-Person Open Meeting being conducted via livestreaming. • The public is welcome to watch the meeting at the link above. •

If you wish to comment on an agenda item, please email your name, affiliation, and the agenda item to nhenson@mdta.state.md.us no later than 12:00 Noon on Monday, November 24. You MUST pre-register and attend the meeting in person to comment. Once pre-registered, all pertinent information will be emailed to you.

AGENDA

OPEN SESSION – 9:00 AM

Call Meeting to Order

1. Approval – Open Session Meeting Minutes of October 30, 2025

Chair

5 min.

2. Approval – Closed Session Meeting Minutes of October 30, 2025 Chair

5 min.

3. Update – Independent Auditor’s Report for the Fiscal Year 2025 Financial Statements Audit and SOC 1 and SOC 2 Reports

William Seymour, SB 10 min.

Tiana Wynn, SB

4. Approval – Contract Awards

Jeffrey Davis

10 min.

• FT-3028-0000 – Miscellaneous Structural Repairs Inside Fort McHenry Tunnel • MR-3043-0000 – On-Call Structural Repairs and Miscellaneous Modifications • MA-3024-0000 – Replace CCTV at Various Facilities • J01B5600027 – IBM Maximo Consulting Services

5. Approval – Fiscal Year 2027 Preliminary Operating Budget –

Jeffrey Brown

10 min.

Approval of the Preliminary Operating budget

6. Update – Francis Scott Key Bridge – Update on Cost and Schedule James Harkness

30 min.

Brian Wolfe

7. Approval – Final Fiscal Year 2026-2031 Consolidated Transportation Jennifer Stump

10 min.

Program – Approval of the Six-Year Final Fiscal Year 2026-2031 Capital Budget

8. Update – Traffic and Revenue Forecast Update – A Review of the Walter Laun

10 min.

of the Annual Updates to the Traffic and Revenue Forecasts for All Facilities

9. Approval – Final Fiscal Year 2026-2031 Financial Forecast –

Deborah Sharpless

10 min.

Approval of the Six-Year Financial Forecast

Allen Garman

10. Update – Bi-Annual Review of Revenue Sufficiency – Review Allen Garman

5 min.

of Revenues as Required by the MDTA Board Operating Policy

MARYLAND TRANSPORTATION AUTHORITY BOARD MEETING NOVEMBER 25, 2025 9:00 AM

AGENDA PAGE 2

11. Approval – Contract Modification

James Harkness

5 min.

• KB-4903-0000 – Key Bridge Rebuild Progressive Design Build Contract – Modification 2

12. Approval – Investment Committee Report – Quarterly Review

Kevin Cullity

5 min.

of Investment Strategy and Benchmarks

13. Update – Fiscal Year 2025 Revenue Assurance Metrics – A

Walter Laun

10 min.

Review of Collected Toll Revenue

14. Update – Executive Director’s Report – Verbal

Bruce Gartner

5 min.

Vote to Adjourn Meeting

TAB 1

MARYLAND TRANSPORTATION AUTHORITY BOARD MEETING

THURSDAY, OCTOBER 30, 2025 9:00 A.M.

2310 BROENING HIGHWAY, BALTIMORE MD 21224 IN-PERSON & LIVESTREAMED OPEN MEETING

OPEN SESSION

Samantha J. Biddle, Chair

MEMBERS ATTENDING:

Dontae Carroll Maricela Cordova William H. Cox, Jr. Mario J. Gangemi Cynthia D. Penny-Ardinger Jeffrey S. Rosen - Phone

Samuel D. Snead John F. von Paris

STAFF ATTENDING:

Percy Dangerfield Jeffrey P. Davis

Allen Garman Bruce Gartner

Chantelle Green James Harkness Natalie Henson Mike Himmer Richard Jaramillo Jim Loukas Lt. Col. Corey McKenzie Megan Mohan, Esq.

Mary O’Keeffe Deb Sharpless Cheryl Sparks Jennifer Stump Bradley Tanner John Wedemeyer Brian Wolfe

OTHERS ATTENDING:

Jaclyn Hartman, Assistant Secretary, MDOT

OPEN SESSION OCTOBER 30, 2025 PAGE 2 OF 8

At 9:02 a.m. Chair Samantha J. Biddle called the meeting of the Maryland Transportation Authority (MDTA) Board to order. The meeting was held in-person at MDTA Headquarters, 2310 Broening Highway, Baltimore MD 21224 and was livestreamed on the MDTA Board Meeting web page.

APPROVAL – OPEN SESSION MEETING MINUTES OF SEPTEMBER 25, 2025

Upon motion by Member Mario J. Gangemi, and seconded by Member Cynthia D. Penny- Ardinger, the open session meeting minutes of the MDTA Board meeting held on September 25, 2025 were unanimously approved.

APPROVAL – CONTRACT AWARDS

• MDTA 2022-04B – Operational Asset Management and Support Services – Small Business Reserve (AE-3130)

Mr. Jeffrey Davis requested approval from the MDTA Board to execute Contract No. MDTA 2022-04B – Operational Asset Management and Support Services – Small Business Reserve (AE- 3130) with Arya Consultants, Inc. in the amount of $2,000,000.00. Mr. Davis explained that the consultants shall provide support for MDTA’s Asset Management initiatives such as assisting with The Secretary’s Office (TSO) Asset Management plans and directives including enhancing the capabilities of the Enterprise Asset Management database known as MAXIMO, enhancing preventative maintenance and warranty programs, and acting as Subject Matter Experts (SMEs) for various operational systems such as HVAC, fire alarm/fire suppression, elevator, plumbing, roofing, and other transportation asset systems. He further explained that six (6) proposals were received and one (1) proposal was withdrawn at the request of the firm. As this contract exceeds the MDTA’s delegated authority, the award of this contract would be pending approval at the next available Maryland Board of Public Works (BPW) meeting. Upon motion by Member William H. Cox, Jr. and seconded by Member Maricela Cordova, the Members unanimously approved Contract No. MDTA 2022-04B – Operational Asset Management and Support Services – Small Business Reserve (AE-3130).

• J01B4600044 – Citilog Incident Detection System Software Maintenance and Service Plan

Mr. Jeffrey Davis requested approval from the MDTA Board to execute Contract No. J01B4600044 – Citilog Incident Detection System Software Maintenance and Service Plan with Sensys Network Inc. in the amount of $431,850.00 for a term of five (5) years.

OPEN SESSION OCTOBER 30, 2025 PAGE 3 OF 8

Mr. Davis explained that this sole-source contract is to provide a full-service software maintenance and service plan (including repairs) for Citilog IDS software. The Citilog IDS software detects stopped vehicles inside the tunnels, bridges, and roadways using video images from Closed Circuit Television (CCTV) cameras. A sole-sourced procurement is required because Sensys Network, Inc is the developer of the proprietary Citilog IDS software and only technicians from Sensys Network can provide maintenance and upkeep of the system. As this contract exceeds the MDTA’s delegated authority, the award of this contract would be pending approval at the next available BPW meeting. Upon motion by Member Mario J. Gangemi and seconded by Member Samuel D. Snead, the Members unanimously approved Contract No. J01B4600044 – Citilog Incident Detection System Software Maintenance and Service Plan.

• MT-00211281 – Weigh Station Scale Maintenance

Mr. Jeffrey Davis requested approval from the MDTA Board to execute Contract No. MT- 00211281 – Weigh Station Scale Maintenance with Mettler-Toledo, LLC in the amount of $1,057,934.00. Mr. Davis explained that the purpose of the project is to retain the services of Mettler-Toledo, LLC (Mettler-Toledo) for weigh station scale maintenance at I-95 Northbound and Southbound JFK Toll Facility, US40 Eastbound and Westbound at Hatem Bridge, and at US 50/301 Eastbound and Westbound locations at the Bay Bridge. Mettler-Toledo shall furnish all personnel, maintenance services, training materials, and program oversight necessary to support MDTA’s weigh scale maintenance program. As this contract exceeds the MDTA’s delegated authority, the award of this contract would be pending approval at the next available BPW meeting.

Upon motion by Member Dontae Carroll and seconded by Member John F. von Paris, the Members unanimously approved Contract No. MT-00211281 – Weigh Station Scale Maintenance

APPROVAL – RESTRICTIVE COVENANTS

Mr. John Wedemeyer requested approval from the Maryland Transportation Authority (MDTA) Board to place restrictive covenants on the subject property containing 15.208 acres, plus or minus, in order to meet environmental obligations. Mr. Wedemeyer explained that as compensatory mitigation for Tier II impacts as stipulated in the Tier II Social and Economic Justification Form for the I-95 Express Toll Lanes Northbound Extension Project dated November 2023, and approved under State of Maryland (State) law through permit No. 19-NT-0150/201960846 issued by the Maryland Department of the Environment (“MDE”), to include any successor agency, both documents of which are incorporated by reference in the DRC document, and in recognition of the continuing benefit to the Property, and for the protection of forest and waters of the State of Maryland and scenic, resource, environmental, and general property values, Declarant has agreed to execute and record the Declaration of Restrictive Covenants (“Declaration”) placing certain restrictive covenants on a Conservation Area equaling the entirety of the Property, in order

OPEN SESSION OCTOBER 30, 2025 PAGE 4 OF 8

that the Conservation Area shall remain substantially in its natural condition forever; and the Conservation Area may contain land, functions, values, and services that serve as mitigation for impacts within the Otter Point Creek 1 Tier II catchment that were permitted by MDE; and MDE is a third-party beneficiary under the Declaration. Upon motion by Member William H. Cox, Jr. and seconded by Member Samuel D. Snead, the Members unanimously approved to place restrictive covenants on the subject property containing 15.208 acres, plus or minus, in order to meet environmental obligations.

APPROVAL – DEBT POLICY

Mr. Allen Garman requested MDTA Board approval to continue with the current MDTA Debt Policy.

Mr. Garman explained that following the annual review by internal staff and an external municipal advisory firm, no changes to the Debt Policy are currently recommended.

He further explained that the Debt Policy includes legal requirements within Maryland State Law and the Trust Agreement, as well as Board directives to ensure financial strength. These guidelines and mandates support credit quality and access to the capital markets at the lowest possible financing rates.

Upon motion by Member Samuel D. Snead and seconded by Member Dontae Carroll, continuing with the current MDTA Debt Policy was unanimously approved.

APPROVAL – TRUST AGREEMENT CHANGES

Mr. Garman advised that currently, the Trust Agreement does not provide the MDTA with the ability to self-fund a business interruption insurance reserve and treat the releases from the reserve as Net Revenues for purposes of supporting the annual Rate Covenant or Debt Service Coverage ratios. Recently, the MDTA has experienced rapidly rising insurance premiums nationally as a function of increasing natural disaster loss activity, as well as the MDTA’s recent business interruption experience. These circumstances have necessitated a close examination of the Master Trust Agreement provisions for insurance reserves and the legal treatment of reserve releases to ensure stable Debt Service Coverage. The proposed changes would authorize external Bond Counsel to draft changes to various sections and definitions within the Trust Agreement to provide the MDTA with the financial flexibility to self- insure for potential business interruption with cash reserves. Other potential benefits include lower insurance costs, the elimination of counterparty risk, and more stable Debt Service Coverage in stress scenarios. Mr. Garman also advised that per the Finance and Administration Committee’s request, MDTA Management has drafted proposed changes to the MDTA’s Board Operating Policy to reserve the authority of the MDTA Board to make future decisions regarding self-funding. The proposed changes will be presented to the Board for approval at a future date.

OPEN SESSION OCTOBER 30, 2025 PAGE 5 OF 8

Upon motion by Member Samuel D. Snead and seconded by Member Maricela Cordova, the proposed changes to the Master Trust Agreement to be executed through a springing amendment process was unanimously approved.

UPDATE – CONSOLIDATED TRANSPORTATION PROGRAM (CTP) PROCESS AND ADDITIONS

Ms. Jennifer Stump updated the MDTA Board on the Consolidated Transportation Program (CTP) process and additions to the capital program. She explained that every year the Maryland Transportation Authority (MDTA) releases the CTP, presenting MDTA’s ongoing and new capital projects for a six-year period (the current year, the upcoming budget year, and the four succeeding planning years) for all MDTA facilities. Ms. Stump explained that after approval by the MDTA Board, the Draft CTP is presented to local elected officials and citizens in September through November throughout Maryland for review and comment. It is then revised and submitted, after MDTA Board approval, as the Final CTP as part of the Governor’s budget to the Maryland General Assembly in January. This process is required by statute and applies to MDTA as well as the Maryland Department of Transportation (MDOT) modes. She further explained that the CTP is separated into three parts, (1) Construction Program - Major projects, (2) Development and Evaluation (D&E) Program - Major projects, and (3) System Preservation - Minor Projects. Major capital projects are listed individually; minor projects are grouped and shown by category of work (e.g., environmental, highway preservation, safety improvements). The Fiscal Year 2026-2031 Final CTP includes four new projects. (1) Chesapeake Bay Water Quality Restoration; (2) Fort McHenry Tunnel utility Rooms Electrical and Structural Rehabilitation; (3) NetApp Unified Storage Hardware Replacement; and (4) Bay Bridge Suspension Span Anchorage Concrete and navigation Lighting Rehabilitation.

UPDATE – KEY BRIDGE REBUILD

Mr. James Harkness and Mr. Brian Wolfe updated the MDTA Board on the progress of design and reconstruction efforts for the Francis Scott Key Bridge Rebuild.

They explained that Notice-to-Proceed to the Kiewit progressive design-build (PDB) team was issued in September 2024. The PDB team and MDTA’s project team have been working collaboratively to advance the design of the complex bridge structure. The Proof of Concept (15% design) for the cable-stayed bridge design was submitted in January 2025, establishing the bridge type, overall span layout, and aesthetic direction for the new bridge. The design progressed to 30% level in March 2025. Over the summer months design progressed through 50% with 70% design scheduled to be completed by mid-November 2025. Pre-construction efforts have also progressed in the field, with soil investigations on land and in the Patapsco River. The geotechnical efforts allow designers to characterize the foundation conditions which informs pile design and test pile program development.

OPEN SESSION OCTOBER 30, 2025 PAGE 6 OF 8

They further explained that the mechanical demolition began on July 7 with the saw cutting and removal of deck and parapet sections of the existing bridge with all concrete superstructure removed from both bridge approaches as of October 1, 2025. The contractor is currently cutting and lifting the steel girders. Once complete, the contractor will remove the remaining land-based piers and abutments. This work is expected to continue through Quarter 1 of 2026. The test pile program is underway at the project site. The first six test piles were delivered to the site on September 21, 2025, with a second barge load of six piles arriving on October 22. Test pile installation started on October 1 with load testing anticipated in early November. Final design and early material procurement are underway for the construction trestle, production pile template, and pylon and vessel protection foundation piles.

UPDATE – LEGISLATIVE REPORTS SUBMITTED TO THE LEGISLATURE

• Joint Chairmen’s Report Regarding the Francis Scott Key Bridge Reconstruction

Mr. Brian Wolfe provided a summary of the Joint Chairmen’s Report (JCR) regarding the Francis Scott Key Bridge Reconstruction.

Mr. Wolfe explained that during the 2025 Legislative Session, committee narrative was adopted by the budget committees that required the Maryland Transportation Authority (MDTA) to prepare a JCR that provides a status update on the progress of the reconstruction efforts for the Francis Scott Key (FSK) Bridge. The language stated the Senate Budget and Taxation Committee and House Appropriations Committee are interested in receiving quarterly updates on the progress of the reconstruction of the FSK Bridge. Specifically, the JCR is to provide updates on engineering and design, federal permitting, preconstruction efforts and construction activities. The Committees also requested updates on running totals of expenditures, availability of and projected timeframes for federal reimbursements, and any material changes to cost or schedule. Mr. Wolfe further explained that the first quarterly JCR was due July 1, 2025, and the second quarterly JCR was due October 1, 2025. Future quarterly updates are due January 1, 2026 and April 1, 2026. MDTA’s JCR report provided detailed updates on the status of engineering efforts, permitting coordination with federal and state agencies, and preconstruction activities such as surveys and geotechnical investigations. Expenditures as of June 2025 were also provided along with an explanation of federal reimbursements. Changes to the Phase 1 contract include extending the contract to reach 70% design completion prior to estimating and negotiating the binding price proposal.

• Joint Chairmen’s Report on Collecting Outstanding Tolls from Out-of-State Motorists

Ms. Chantelle Green explained that during the 2025 Legislative Session, budgetary language was adopted that required the MDTA to prepare a JCR that addresses the collection of outstanding tolls from out-of-state motorists. The budget language stated that the Senate Budget and Taxation Committee and House Appropriations Committee are interested in continuing to monitor the MDTA’s efforts to collect outstanding tolls incurred at Maryland’s toll facilities, given the potential for significant impacts that outstanding tolls may have on MDTA’s revenues. The Committees requested

OPEN SESSION OCTOBER 30, 2025 PAGE 7 OF 8

details on the (1) amount of uncollected tolls and civil penalties outstanding; (2) amount of outstanding tolls collected in fiscal 2025; (3) geographic breakdown by state; (4) age ranges of uncollected tolls; and (5) timeframe and procedures for referring unpaid toll debt to the Motor Vehicle Administration (MVA) for the purposes of flagging of a vehicle owner’s registration for suspension or non-renewal. Additionally, the JCR asks the MDTA to provide an update on the status of establishing a reciprocity agreement with Pennsylvania and other neighboring states as well as the feasibility of utilizing collections agencies. Ms. Green further explained that as mentioned in the January 2025 JCR on Collecting Outstanding Tolls from Out-of-State Motorists , the MDTA acknowledged out-of-state reciprocity agreements and collection contracts are good tools to encourage payment and provided the financial data requested. The MDTA also acknowledged its focus has been on expanding registered account strategies such as expanding E-ZPass® and other similar interoperability programs across the country. The remainder of the report addresses the continued value associated with prioritizing interoperability over reciprocity agreements and out-of-state collection agencies. Future actions will include pursuing reciprocity agreements and the use of a professional debt collections agency for out- of-state collections along with other toll collection initiatives that are highlighted at the conclusion of the report.

UPDATE – MDTA POLICE PUBLIC SECURITY

Lieutenant Colonel Corey McKenzie updated the MDTA Board on MDTA Police activities including recruitment efforts, improved engagement and productivity, reduction in traffic collisions, and the upcoming MDTA Police Graduation Ceremony.

UPDATE - EXECUTIVE DIRECTOR’S REPORT

Mr. Bruce Gartner updated the Board on the following: New Communication Resources Recently Launched for the key Bridge Rebuild Project; the October 20 Industry Forum for the Bay Bridge Protection Project; the October 23 Relocation of the I-895 Overhead Toll Collection Gantries North of the Baltimore Harbor Tunnel and the Childs Street Entry and Exit Ramps; the Ongoing CTP Tour Meetings; the October 2 Employee Town Hall; and the Bay Bridge and Customer Experience Team Recognition Ceremonies. Mr. Gartner also recognized MDTA’s Employee of the 3 rd Quarter, 2025, Mr. Michael Himmer. Mr. Himmer started with the MDTA on January 15, 2003 and has been recognized for exemplary customer service and integrity to the MDTA. He has provided exceptional support and services in his role as Radio Shop Manager within the Division of Fleet Management and his efforts have significantly improved radio communications with Police and operations personnel by establishing patches, enabling code patches, allowing dispatchers to communicate with other officers outside of detachment of various campuses which allows officers to communicate seamlessly when security measures are needed. Mr. Himmer also implemented the manual programming of radios to over-the- air radio programming and functionality which greatly improved and efficiently managed any required updates for radio interoperability and has been a vital contributor and leader in assisting the

OPEN SESSION OCTOBER 30, 2025 PAGE 8 OF 8

Fleets Quality Assurance Manager in the movement and installation of 165 radios in new police vehicles. His management in that effort has enabled seamless coordination between Quality Assurance and the Police which has led to a successful project completion of June 30, 2025.

VOTE TO GO INTO CLOSED SESSION

At 10:30 a.m., upon motion by Member William H. Cox, Jr. and seconded by Member Maricela Cordova, the Members voted unanimously to move into Closed Session under the Maryland Open Meetings Act, the MDTA Board met in Closed Session under the General Provisions Article, Section 3-305(b)(15) to discuss the MDTA’s Cyber Security including discussions regarding security assessments and deployment of information technology and network security related to detecting and investigating possible criminal activity; Section 3-305(b)(10) and (12) to receive an update on deployment of police staff and resources and other security measures and to discuss a pending investigative proceeding involving possible criminal conduct; and Section 3-305(b)(8) to receive a status update on all litigation currently pending against the MDTA. In attendance for the Closed Session were Chair Samantha J. Biddle; Members Carroll, Cordova, Cox, Gangemi, Penny-Ardinger, Rosen-via Phone, Snead, and von Paris; Bruce Gartner; Percy Dangerfield, Charles Markakis; David Goldsborough; Lieutenant Colonel Corey McKenzie; Megan Mohan, Esq.; and Natalie Henson.

VOTE TO ADJOURN CLOSED SESSION

At 11:01 a.m., a motion was made by Member Mario J. Gangemi and seconded by Member William H. Cox, Jr., which was unanimously approved, to adjourn the Closed Session and return to Open Session. There were no actions taken in Closed Session that require ratification.

VOTE TO ADJOURN MEETING

There being no further business, upon motion by Member Mario J. Gangemi and seconded by Member Cynthia D. Penny-Ardinger, the Members unanimously voted to adjourn the meeting at 11:03 a.m.

The next MDTA Board Meeting will be held on Tuesday, November 25, 2025 at 9:00 a.m. at MDTA, 2310 Broening Highway, Baltimore MD and will be livestreamed on the MDTA Board webpage.

APPROVED AND CONCURRED IN:

_________________________________________ Samantha J. Biddle, Chair

TAB 2

CLOSED SESSION MINUTES

VERBAL

TAB 3

MEMORANDUM

TO:

MDTA Board

FROM: Director of Finance Chantelle Green SUBJECT: Independent Auditor’s Report for the FY 2025 Financial Statements Audit & SOC 1 Type 2 & SOC 2 Type 2 Reports DATE: November 25, 2025 PURPOSE OF MEMORANDUM To present the results of the Fiscal Year (FY) 2025 financial statements and Service Organization Control (SOC) audits conducted for the Maryland E-ZPass® System. The audits were conducted by the Maryland Transportation Authority’s independent auditors, SB & Company, LLC (SB& Co.). SUMMARY Regarding the MDTA’s financial statements, the attached presentation includes an overview of the key areas of emphasis, internal controls, required auditor communications, and future considerations. An unmodified opinion was issued by the independent auditor. As it pertains to the SOC audits, exceptions ( i.e. , findings) were noted related to the timeliness of disaster recovery testing (TransCore) and organization and human resources and confidentiality (Kapsch). Irrespective of the findings, unmodified opinions were issued for the SOC 1 Type 2 and SOC 2 Type 2 audits. ATTACHMENT • PowerPoint Presentation – MDTA FY 2025 Financial Statements & SOC Audit Results

2310 Broening Highway • Baltimore, MD 21224 • mdta@mdta.maryland.gov • 410.537.1000 • 711 (MD Relay) • mdta.maryland.gov • DriveEzMD.com

Presentation to Those Charged with Governance

June 30, 2025 Audit Results Maryland Transportation Authority

November 25, 2025

May 29, 2025

Executive Summary I. Scope of Services  Audit of the June 30, 2025 financial statements  Review of the Annual Comprehensive Financial Report  Uniform Grant Guidance Audit for the year ended June 30, 2025  SSAE 18, Service Organization − SOC Reporting (SOC) 1, Type 2 report for Kapsch & TransCore − SOC 2, Type 2 report - TransCore  Year-round advice and consultation

II. Results  Met with the Audit Committee on November 13, 2025  Issued an unmodified opinion on the financial statements and an internal controls over financial reporting  Two exceptions identified with the SOC reporting procedures; unmodified opinions issued  Planning to issue an unmodified opinion on uniform grant guidance audit  Discovered no instances of fraud and were not made aware of fraud occurrences  Discovered no material weakness in internal controls  Discovered no audit adjustments  Received full cooperation from management

2

Significant Financial Statement Risks The principle areas of audit emphasis included key industry, business and technical issues as identified during our audit planning and the accounts with greater risk of misstatement due to their inherent risk, error or fraud.

The significant accounting principles, estimates and judgments were as follows:  Revenue recognition  Cash and investments, including restricted assets  Capital Asset Accounting, including depreciation and disposal of capital assets  Accounting for pensions The principle areas of audit emphasis were as follows:  Cash reconciliations  Cash disbursements  Collectability accounts receivables  Completeness of liabilities  Intergovernmental agency relationships  Debt accounting and other long-term liabilities, including review of debt covenants  Service concession arrangements

3

Recent Accounting Standards

 GASB 101, Compensated Absences – Adopted in FY 2025  The primary objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. The impact of the new accounting standard adoption is as follows:

June 30, 2024 - (thousands of dollars) Net position, as originially stated

$

6,060,373

Adjustment to restate Net position, as restated

(22,334)

$

6,038,039

 GASB 102, Certain Risk Disclosures – Adopted in FY 2025  The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. Adoption did not have a material impact to the financial statements.  GASB 104, Certain Capital Assets , To be adopted in FY 2026  The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information about certain types of capital assets in order to make informed decisions and assess accountability.

4

Financial Statement Highlights Statements of Assets, Liabilities, and Net Position (In ƈousands)

As of June 30:

2025

2024*

2023

$

941,292 672,150

$

951,253 854,448

$

755,409 858,266

Current Assets

Noncurrent Assets Capital Assets, net

7,881,566 9,495,008

7,547,605 9,353,306

7,379,405 8,993,080

Total Assets

Deferred Outflow of Resources

153,447

152,788

129,384

Current Liabilities

491,663

444,008

440,978

Long-Term Bonds Payable Other Long-Term Liabilities

2,471,092

2,574,532

2,696,414

389,960

334,393

288,871

Total Liabilities

3,352,715

3,352,933

3,426,263

Deferred Inflow of Resources

83,586

115,122

146,003

Net Position Net Investment in Capital Assets

5,522,753

5,155,046

4,892,521

Restricted Unrestricted

440,107 249,294

401,539 481,454

100,061 557,616

Total Net Position

$

6,212,154

$

6,038,039

$

5,550,198

* FY24 Total Liabilities and Net Position have been adjusted due to a change in accounting policy (GASB 101).

5

Statements of Revenues, Expenses, and Change in Net Position (In ƈousands) Financial Statement Highlights

For the Years Ended June 30:

2025

2024

2023

Operating revenues Toll revenue

$

732,012 50,369 98,987

$

761,200 55,068 79,529

$

755,701 56,477 41,396

Intergovernmental revenue Toll administrative revenue

Concession revenue Total operating revenue

6,158

6,476

6,303

887,526

902,273

859,877

Operating expenses

(707,692)

(629,951)

(607,982)

Total operating revenues and expenses

179,834

272,322

251,895

Non-operating revenues Investment revenue Total non-operating revenue

53,784 53,784

45,543 45,543

17,583 17,583

Non-operating expenses Loss on disposal (non-Key Bridge)

(4,322) (75,210) (79,532)

(11,895) (85,917) (97,812)

(1,666) (84,454) (86,120)

Interest expense

Total non-operating expenses

Unusual or infrequent items Insurance Proceeds, net Grant and other revenue Expenses related to collapse Net unusual or infrequent items

-

325,000 37,964 (95,176) 267,788

- - - -

20,166

(137)

20,029

6

Change in Net Position

$

174,115

$

487,841

$

183,358

Uniform Grant Guidance Audit Results

Federal Assistance Listing

Federal Expenditures

Major Program

Federal Highway Administration - Key Bridge Collapse

20.205

$ $

18,903,810 18,903,810

Total Federal Awards

Tested Percentage

94%

Threshold for distinguishing between Type A and B programs

$

750,000

Did MDTA qualify as a low risk auditee?

Yes

Section II - Financial Statement Findings

None noted.

Section III - Federal Award Findings

None noted.

7

SOC Reporting  Audit period from July 1, 2024 through June 30, 2025  Kapsch TrafficCom USA – SOC 1 Type 2 Report − Review of 5 Control Objectives described/asserted by Kapsch − No qualifications within the report; however, we did identify one exception (Organization & Human Resources and Confidentiality)  TransCore, LP – SOC 1 Type 2 Report − Review of 11 Control Objectives described/asserted by TransCore − No qualifications within the report − Procedures related to certain complementary user entity controls  TransCore, LP – SOC 2 Type 2 Report − Review of controls related to security, availability, processing integrity, and confidentiality, asserted by TransCore − No qualifications within the report; however, we did identify one exception (disaster recovery) − Procedures related to certain complementary user entity controls

8

SOC 1 vs. SOC 2 - Overview  SOC 1 audit is focused on specific internal controls related to financial reporting. Each audit is unique to the controls tested for that entity.  SOC 1 audits ensure that a service organization has done its due diligence when it comes to the effects their service has on their customer’s financial reporting.  SOC 2 audit is focused on information and IT security identified by any of 5 trust services categories: security, confidentiality, information privacy, processing integrity and availability.  SOC 2 audits ensure that a service organization’s people, infrastructure, software, data-handling, and procedures are

prepared to handle their customer’s information and data and protect it accordingly.  Type 1 reports are as of a specific date; Type 2 reports are for a period of time.

9

Questions & Answers

10

Engagement Team Contact Information

Julie Paris IT Manager Phone: 443-353-5450 Cell: 443-742-9652 jparis@sbandcompany.com Executive Assistant Kameron Pulliam Office: 410-584-0060 kpulliam@sbandcompany.com

Richard Lee Engagement Manager Phone: 410-705-5036 Cell: 213-432-1212 richardjlee@sbandcompany.com Executive Assistant Kameron Pulliam Office: 410-584-0060 kpulliam@sbandcompany.com

William Seymour Engagement Partner Phone: 410-584-1404 Cell: 443-220-4401 wseymour@sbandcompany.com Executive Assistant Chiami Asemota Office: 443-705-5076 casemota@sbandcompany.com

Tiana Wynn Audit Partner Phone: 410-584-2203 Cell: 443-416-6903 twynn@sbandcompany.com Executive Assistant Kameron Pulliam Office: 410-584-0060 kpulliam@sbandcompany.com

11

Washington, D.C. 1200 G Street, NW Suite 800 Washington, D.C. 20005 202.434.8684

Maryland 10200 Grand Central Avenue Suite 250 Owings Mills, MD 21117 410.584.0060

TAB 4

MEMORANDUM

TO:

MDTA Board

FROM: SUBJECT: DATE:

Director of Procurement, Jeffrey Davis, NIGP-CPP, CMPO FT-3028-0000 – Miscellaneous Structural Repairs Inside Fort McHenry Tunnel November 25, 2025

PURPOSE OF MEMORANDUM To seek approval from the MDTA Board to execute Contract No. FT-3028-0000 - Miscellaneous Structural Repairs Inside Fort McHenry Tunnel. SUMMARY The work to be performed under this contract is located at the Fort McHenry Tunnel on I-95 in Baltimore City. The work locations are the Southbound (SB) and Northbound (NB) roadways designated as Bores 1 and 2 (SB) and Bores 3 and 4 (NB). The scope of work includes miscellaneous structural concrete and steel repairs throughout the tunnel, ceiling and wall tiles replacement, and retaining wall repairs at the entrance and exit of the tunnel portals. RECOMMENDATION To execute Contract No. FT-3028-0000 - Miscellaneous Structural Repairs Inside Fort McHenry Tunnel. ATTACHMENT • Project Summary

2310 Broening Highway • Baltimore, MD 21224 • mdta@mdta.maryland.gov • 410.537.1000 • 711 (MD Relay) • mdta.maryland.gov • DriveEzMD.com

AUTHORITY PROJECT SUMMARY FT-3028-0000 - Miscellaneous Structural Repairs Inside Fort McHenry Tunnel

PIN NUMBER CONTRACT NUMBER CONTRACT TITLE

2592 FT-3028-0000 Miscellaneous Structural Repairs Inside Fort McHenry Tunnel

PROJECT SUMMARY

The work to be performed under this contract is located at the Fort McHenry Tunnel on I-95 in Baltimore City. The work locations are the Southbound (SB) and Northbound (NB) roadways designated as Bores 1 and 2 (SB) and Bores 3 and 4 (NB). The scope of work includes miscellaneous structural concrete and steel repairs throughout the tunnel, ceiling and wall tiles replacement, and retaining wall repairs at the entrance and exit of the tunnel portals.

SCHEDULE

ADVERTISEMENT DATE

($)

Aug-25 Jan-26

ANTICIPATED NOTICE TO PROCEED DATE

Advertised GOAL (%)

Proposed GOAL (%)

DURATION (CALENDER DAYS)

MBE PARTICIPATION

730

OVERALL MBE

15.00% 0.00% 0.00% 0.00% 0.00% 1.00%

15.00% 0.00% 0.00% 0.00% 15.00% 1.00%

AFRICAN AMERICAN ASIAN AMERICAN HISPANIC AMERICAN

WOMEN

VSBE

ENGINEER'S ESTIMATE (EE)

$6,429,882.00

BID RESULTS

BID AMOUNT ($)

% VARIANCE TO EE

NO ☒

BID PROTEST

YES

Restoration East, LLC

$5,268,778.00

-18%

M.D. Miller Co., Inc. T/A The Marksmen $6,993,956.10

8%

FUNDING SOURCE

100% TOLL REVENUE

W.M. SCHLOSSER CO., INC

$11,487,000.00

78%

MEMORANDUM

TO:

MDTA Board

FROM: SUBJECT: DATE:

Director of Procurement, Jeffrey Davis, NIGP-CPP, CMPO MR-3043-0000 – On-Call Structural Repairs and Miscellaneous Modifications November 25, 2025

PURPOSE OF MEMORANDUM To seek approval from the MDTA Board to execute Contract No. MR-3043-0000 - On-Call Structural Repairs and Miscellaneous Modifications. SUMMARY This project is a multi-award for three (3) contracts to provide labor, equipment, and materials necessary to perform miscellaneous structural, concrete, and other related repairs, upgrades, replacements, and new construction as directed by the MDTA project manager. This work may be required on any portion (bridge, tunnel, highway, building, and all appurtenances) of any of the MDTA’s facilities. The three lowest successful bidders will be awarded not-to-exceed contracts in the amounts of $15,500,000.00, $14,500,000.00, and $11,000,000.00 respectively. RECOMMENDATION To execute Contract No. MR-3043-0000 - On-Call Structural Repairs and Miscellaneous Modifications. ATTACHMENT • Project Summary

2310 Broening Highway • Baltimore, MD 21224 • mdta@mdta.maryland.gov • 410.537.1000 • 711 (MD Relay) • mdta.maryland.gov • DriveEzMD.com

AUTHORITY PROJECT SUMMARY MR-3043-000 - On-Call Structural Repairs and Miscellaneous Modifications

2665 MR-3043-000 On-Call Structural Repairs and Miscellaneous Modifications

PIN NUMBER CONTRACT NUMBER CONTRACT TITLE

This project is a multi-award for three (3) contracts to provide labor, equipment, and materials necessary to perform miscellaneous structural, concrete, and other related repairs, upgrades, replacements, and new construction as directed by the MDTA project manager. This work may be required on any portion (bridge, tunnel, highway, building, and all appurtenances) of any of the MDTA’s facilities.

PROJECT SUMMARY

SCHEDULE

ADVERTISEMENT DATE

7/30/2025

($)

ANTICIPATED NOTICE TO PROCEED DATE

Dec-25

Advertised GOAL (%)

Proposed GOAL (%)

DURATION (CALENDER DAYS)

1,095

MBE PARTICIPATION

OVERALL MBE

19.00%

19.00%

AFRICAN AMERICAN ASIAN AMERICAN HISPANIC AMERICAN

0.00% 0.00% 0.00% 0.00% 1.00%

0.00% 0.00% 0.00% 0.00% 1.00%

WOMEN

VSBE

ENGINEER'S ESTIMATE (EE)

$13,999,700.00

BID RESULTS

BID AMOUNT ($)

% VARIANCE TO EE

NO ☒

BID PROTEST

YES

Brawner Builders, Inc

$9,665,734.21 $9,755,230.35 $12,999,226.20 $14,999,580.00 $27,524,200.00

-31% -30%

M. D. Miller t/a The Marksmen

FUNDING SOURCE

100% TOLL REVENUE

Concrete General, Inc.

-7%

Freyssinet, LLC

7%

Southern Road & Bridge LLC

97%

MEMORANDUM

TO:

MDTA Board

FROM: SUBJECT: DATE:

Director of Procurement, Jeffrey Davis, NIGP-CPP, CMPO MA-3024-0000 – System-Wide CCTV Replacement November 25, 2025

PURPOSE OF MEMORANDUM To seek approval from the MDTA Board to execute Contract No. MA-3024-0000 – System-wide CCTV Replacement. SUMMARY The work to be performed under this contract is located along multiple MDTA facilities including the Baltimore Harbor Tunnel, Fort McHenry Tunnel, Francis Scott Key Bridge, John F. Kennedy Memorial Highway, Thomas J. Hatem Memorial Bridge, Intercounty Connector, and William Preston Lane Jr. Memorial Bridge facilities. The project will upgrade existing CCTV roadway cameras and camera lowering system, upgrade existing tunnel cameras with new PTZ cameras, upgrade existing CCTV security cameras, and upgrade fiber optic communication equipment including a new fiber optic backbone installation. This contract received a single bid. The procurement officer made several efforts to increase awareness of the project through direct solicitation and extension of the bid due date to offer prospective bidders sufficient time to respond. When the single bid was received, the procurement officer evaluated Aldridge Electric, Inc. and determined their bid is fair and reasonable and that the firm is qualified to complete this specialized work. RECOMMENDATION To execute Contract No. MA-3024-0000 – System-wide CCTV Replacement. ATTACHMENT • Project Summary

2310 Broening Highway • Baltimore, MD 21224 • mdta@mdta.maryland.gov • 410.537.1000 • 711 (MD Relay) • mdta.maryland.gov • DriveEzMD.com

AUTHORITY PROJECT SUMMARY MA-3024 SYSTEM-WIDE CCTV REPLACEMENT

PIN NUMBER CONTRACT NUMBER CONTRACT TITLE

MDTAPRJ002585 MA-3024-0000 SYSTEM-WIDE CCTV REPLACEMENT

The work to be performed under this contract is located along multiple MDTA facilities including the Baltimore Harbor Tunnel, Fort McHenry Tunnel, Francis Scott Key Bridge, John F. Kennedy Memorial Highway, Thomas J. Hatem Memorial Bridge, Intercounty Connector, and William Preston Lane Jr. Memorial Bridge facilities. The project will upgrade existing CCTV roadway cameras and camera lowering system, upgrade existing tunnel cameras with new PTZ cameras, upgrade existing CCTV security cameras, and upgrade fiber optic communication equipment including a new fiber optic backbone installation.

PROJECT SUMMARY

SCHEDULE

ADVERTISEMENT DATE

($)

6/12/2025

ANTICIPATED NOTICE TO PROCEED DATE

Advertised GOAL (%)

Proposed GOAL (%)

Feb-26

DURATION (CALENDER DAYS)

MBE PARTICIPATION

1,460

OVERALL MBE

18.00% 0.00% 0.00% 0.00% 0.00% 1.00%

18.07% 0.00% 0.00% 0.00% 0.00% 1.00%

AFRICAN AMERICAN ASIAN AMERICAN HISPANIC AMERICAN

WOMEN

VSBE

ENGINEER'S ESTIMATE (EE)

$9,047,780.00

BID RESULTS

BID AMOUNT ($)

% VARIANCE TO EE

NO ☒

BID PROTEST

YES

Aldridge Electric, Inc

9,978,509.27

10%

FUNDING SOURCE

100% TOLL REVENUE

MEMORANDUM

TO:

MDTA Board

FROM: SUBJECT: DATE:

Director of Procurement, Jeffrey Davis, NIGP-CPP, CMPO J01B5600027 - IBM Maximo Consulting Services November 25, 2025

PURPOSE OF MEMORANDUM To seek approval from the MDTA Board to execute Contract No. J01B5600027 - IBM Maximo Consulting Services. SUMMARY This Sole Source Contract is to provide consulting services for the IBM Maximo system currently utilized by the MDTA as its asset management system. The services include architects, delivery consultants, and project managers which will be utilized to build and upgrade the current Maximo system to the Maximo Application Suite (MAS) version 9. A Sole Source procurement is required because IBM Corporation is the developer and proprietary owner of the Maximo software and only technicians from IBM can provide the upgrades required for MAS version 9. The total amount for this contract is $5,065,328.80 for a term of five (5) years. As this project exceeds MDTA’s delegated authority, this will be presented at the next available BPW meeting. RECOMMENDATION To execute Contract No. J01B5600027 - IBM Maximo Consulting Services. ATTACHMENT • Project Summary

2310 Broening Highway • Baltimore, MD 21224 • mdta@mdta.maryland.gov • 410.537.1000 • 711 (MD Relay) • mdta.maryland.gov • DriveEzMD.com

AUTHORITY PROJECT SUMMARY

PIN NUMBER

TBD

CONTRACT NUMBER

J01B5600027

CONTRACT TITLE

IBM Maximo Consulting Services

This Sole Source Contract is to provide consulting services for the IBM Maximo system currently utilized by the MDTA as its asset management system. The services include architects, delivery consultants, and project managers which will be utilized to build and upgrade the current Maximo system to the Maximo Application Suite (MAS) version 9. A Sole Source procurement is required because IBM Corporation is the developer and proprietary owner of the Maximo software and only technicians from IBM can provide the upgrades required for MAS version 9. The total amount for this contract is $5,065,328.80 for a term of five (5) years.

PROJECT SUMMARY

ADVERTISED GOAL (%)

PROPOSED GOAL (%)

SCHEDULE

MBE PARTICIPATION

ADVERTISEMENT DATE ANTICIPATED NTP DATE

7/28/2025 1/1/2026

OVERALL MBE

0.00% 0.00% 0.00% 0.00%

0.00% 0.00% 0.00% 0.00%

AFRICAN AMERICAN ASIAN AMERICAN

DURATION (CALENDER DAYS)

1825

VSBE

% VARIANCE TO EE

BID RESULTS

BID AMOUNT ($)

($)

ENGINEER'S ESTIMATE (EE)

$5,000,000.00

IBM Corporation

$5,065,328.80

1.31%

No other bidders - Sole Source

YES

NO

BID PROTEST

Check

Check

TAB 5

Cynthia D. Penny-Ardinger Jeffrey S. Rosen Samuel D. Snead, MCP, MA John F. von Paris

MEMORANDUM

TO:

MDTA Board

FROM: SUBJECT:

Director of Budget Jeffrey Brown Fiscal Year 2027 Preliminary Budget

DATE:

November 25, 2025

PURPOSE The purpose of this memorandum is to request approval from the Maryland Transportation Authority (MDTA) Board for the Fiscal Year (FY) 2027 Preliminary Operating Budget. KEY TAKEAWAYS Key points regarding the FY 2026 Amended Operating Budget relative to the FY 2027 Preliminary Operating Budget: FY 2027 Preliminary Operating Budget Request Summary of Major Changes ($ millions) FY 2027 Preliminary Operating Budget Request $463.1 FY 2026 Amended Operating Budget $462.2 $ Change FY 2027 vs FY 2026 0.9 % Change FY 2027 vs FY 2026 0.2% The proposed FY 2027 Preliminary Operating Budget of $463.1 million represents a $0.9 million, or 0.2%, increase versus the FY 2026 Amended Operating Budget. Several of the key changes include the transfer of IT personnel costs to contractual services and increases in E- ZPass ® service center (tolling vendor) costs, building/road repair and maintenance costs, and insurance costs. These increases were partially offset by reduced vehicle purchases, reduced credit card fees, and various other smaller reductions.

2310 Broening Highway • Baltimore, MD 21224 • mdta@mdta.maryland.gov • 410.537.1000 • 711 (MD Relay) • mdta.maryland.gov • DriveEzMD.com

FY 2027 Preliminary Operating Budget Page Two ANALYSIS To better understand the budgetary changes and their associated drivers, the changes have been analyzed by mandated and discretionary expenses.

FY 2026 Amended Operating Budget

$462.2

Mandated Changes

(7.5)

Additions Reductions

20.5

(12.1)

FY 2027 Prelim Operating Budget

$463.1

Attachment 1 – identifies the mandated and discretionary additions and reductions. The mandated changes decreased the budget by $7.5 million and are as follows: • Personnel expenses for RC 9507 (IT) decreased by $8.0 million (base salaries & fringe benefits) following the transfer of Object 01 (Personnel) costs to Object 08 (Contractual Services). Future IT personnel costs will be allocated to the MDTA by TSO as part of the IT consolidation. After accounting for this change, all other mandated expenses increased $0.5 million. • Overtime (0104) increases by $0.5 million. • Base salaries (0101 – excludes MSP) increases $0.2 million. This is due to the reduction of 12 positions via the State’s Voluntary Separation Program ($1.2). This reduction is offset by employee reclassifications/other costs. • Pension cost (0161) increases by $0.1 million. • Employee and Retiree Health Insurance (0152, 0154) increases by $0.1 million. • Maryland State Police (MSP) personnel costs decline by $0.2 million, primarily due to a reduction in Overtime (0104), Health costs (0152, 0154), State Police Retirement cost (0165), and Turnover (0189), which total $0.3 million. This is partially offset by an increase in various other MSP-related personnel costs. • Other – (other fringe benefits, accrued leave, etc.) decreases $0.2 million. The operating budget includes $20.5 million in additional discretionary spending. The key variances are as follows: • Other Contractual Services (0899) increases $8.3 million, primarily due to the transfer of IT personnel expenses from Object 01($8 million) as part of the IT consolidation.

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18-19 Page 20-21 Page 22-23 Page 24-25 Page 26-27 Page 28-29 Page 30-31 Page 32-33 Page 34-35 Page 36-37 Page 38-39 Page 40-41 Page 42 Page 43 Page 44-45 Page 46 Page 47 Page 48-49 Page 50 Page 51 Page 52-53 Page 54 Page 55 Page 56-57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72-73 Page 74-75 Page 76-77 Page 78-79 Page 80-81 Page 82-83 Page 84-85 Page 86-87 Page 88-89 Page 90-91 Page 92-93 Page 94-95 Page 96-97 Page 98-99 Page 100-101 Page 102 Page 103 Page 104 Page 105 Page 106-107 Page 108-109 Page 110-111 Page 112-113 Page 114-115 Page 116-117 Page 118-119 Page 120-121 Page 122 Page 123 Page 124 Page 125 Page 126-127 Page 128-129 Page 130-131 Page 132-133 Page 134-135 Page 136 Page 137 Page 138 Page 139 Page 140 Page 141 Page 142 Page 143 Page 144-145 Page 146 Page 147 Page 148 Page 149 Page 150 Page 151 Page 152 Page 153 Page 154 Page 155 Page 156-157 Page 158-159 Page 160-161 Page 162 Page 163 Page 164 Page 165 Page 166 Page 167 Page 168-169 Page 170 Page 171 Page 172 Page 173 Page 174-175 Page 176 Page 177 Page 178-179 Page 180 Page 181 Page 182 Page 183 Page 184 Page 185 Page 186 Page 187 Page 188 Page 189 Page 190 Page 191 Page 192 Page 193 Page 194 Page 195 Page 196 Page 197 Page 198 Page 199 Page 200 Page 201 Page 202 Page 203 Page 204 Page 205 Page 206 Page 207 Page 208-209 Page 210-211 Page 212 Page 213 Page 214 Page 215 Page 216 Page 217 Page 218 Page 219 Page 220 Page 221 Page 222-223 Page 224 Page 225 Page 226 Page 227 Page 228 Page 229 Page 230 Page 231 Page 232 Page 233 Page 234 Page 235 Page 236 Page 237 Page 238 Page 239 Page 240 Page 241 Page 242 Page 243 Page 244 Page 245 Page 246 Page 247 Page 248 Page 249 Page 250-251 Page 252-253 Page 254-255 Page 256-257 Page 258-259

Made with FlippingBook - professional solution for displaying marketing and sales documents online