Minutes of the Board of Directors Meeting
August 13, 2004

The Board of Directors of the Lancaster County Solid Waste Management Authority met on Friday, August 13, 2004 at 7:30 a.m., at the Authority office, 1299 Harrisburg Pike, Lancaster, PA.

ATTENDANCE

Board of Directors present were: Chairman Musser, Ebel, Frost, Gordon, Hammel, Houck, Kassees, Rosier and Wood. Staff present were: Warner, Buller, Forster, Lausch, Norris, Olson, Zorbaugh and Dougherty. Also present were: Solicitor George Brubaker of Hartman Underhill & Brubaker; Ad Crable, Lancaster New Era; and citizens as listed on the attached sign-in sheet.

APPROVAL OF THE MINUTES

Mr. Musser asked about additions or corrections to the minutes of the June 11, 2004 meeting. Mr. Frost moved that the minutes be approved. Mr. Wood seconded. Mr. Musser called a vote; the motion passed unanimously.

PUBLIC COMMENT

Barbara May (100 Red Fox Road, Millersville) shared her concerns about the ethanol industry, primarily the issues of emissions and government subsidies, and provided a copy of her remarks to members of the Board.

Pat Lemay (78 Sun Lane, Millersville) questioned DEP’s ability to monitor an ethanol plant, Penn-Mar’s water source and cited environmental concerns regarding an ethanol plant.

John May (100 Red Fox Road, Millersville) spoke of Richard Bauder’s August 10 letter to the CAC, and expressed his opposition to the ethanol plant.

Scott Stoner-Eby (127 Black Swamp Road, Bainbridge) voiced his opposition to the ethanol plant, citing quality of life issues, and the existence of Brunner Island, Three Mile Island and the Resource Recovery Facility.

Mr. Rosier stated his objection to a previous comment from Ms. May whereby she said the Authority was interested in the ethanol plant simply to get a higher price for its steam.

Mr. Warner said his comments regarding the Authority’s involvement in a possible ethanol plant were well-documented, as were his explanations as to why it would benefit the Authority and the County, but that the ultimate decision rests with Conoy Township.
Mr. Musser noted that Penn-Mar approached the Authority.

Ms. May asked about a trip to see an ethanol plant in Wisconsin.

Mr. Warner explained that Penn-Mar suggested that in order to make informed decisions, it would behoove the Authority, Conoy Township, East Donegal and Marietta leadership to see an ethanol plant in action.

Ms. May asked who paid for the trip.

Mr. Warner said the Authority paid for it since it would make the initial decision on executing an option agreement on land it might sell to Penn-Mar.

Mr. May said he appreciated that the Authority was not actively looking to sell its land in Conoy, but that it was irrelevant as to whether the project should move forward or not.

Mr. Warner said he attempted to explain the Authority’s involvement in the possible ethanol plant at the August 10 CAC meeting, when Richard Bauder’s letter impugned the Authority’s integrity by suggesting an inappropriate relationship between a public authority and a private company. Mr. Warner repeated his comments from that meeting, explaining the divisions and possible connections between the Authority, Conoy Township and Penn-Mar.

Carol Brommer (402 Stackstown Road, Marietta) said she had seen Authority representatives at Conoy Township meetings, and that had to mean the Authority was involved in the project

Mr. Warner said Authority representatives had attended the meetings as a courtesy, in order to answer any questions that might arise about the Authority’s role.


EXECUTIVE DIRECTOR’S REPORT - Mr. Warner reported on the following:

• Financials - Mr. Warner stated that the financial operating results for the month of July were very good. There is a 10% increase in garbage year-to-date over last year.
  
• Transfer Station - Mr. Warner reported that Gannett Fleming’s Intermediate Design Cost Opinion has risen to $18.5 million (construction cost). The significant increases in the price of steel and concrete are major factors in the higher cost estimate of the project.

Mr. Warner distributed copies of a draft construction schedule for the Transfer Station project. Gannett Fleming’s estimate is to complete construction in about 30 months; however, Staff feels 34 months may be more realistic. A meeting is scheduled for September 7 with the Manheim Township Zoning Hearing Board to obtain variances on some technical issues.

Mr. Gordon asked if Gannett Fleming has been asked what their track record has been over the last twelve months on accurately estimating project costs.

Mr. Warner said no, and was not sure if anyone else had.

Mr. Gordon said the Authority may want to do that because he has seen in the last twelve to eighteen months a very significant number of cases where the construction estimates have been exceeded on bid day by significant percentages.

Ms. Hammel said isn’t that going to depend on the contractor?

Mr. Gordon said he was talking about on bid day. He has seen it 10 or even 20 percent over the estimate of the project.

Mr. Warner said that they have been told by Gannett Fleming to expect a more regional type of participation in the project.

Mr. Gordon said that based on the size of the project, there should be no reason there wouldn't be strong local interest and participation.

Mr. Warner asked if Mr. Gordon thought there would be regional interest as well.

Mr. Gordon said that would be hard to say.

Penn-Mar Ethanol - Work has been completed on drafts of the Cooperation Agreement and Steam Sale Agreement and forwarded to PME for their review. PME has resubmitted their Conditional Use Application to Conoy Township, who has deemed it complete. Within the next few weeks dates will be set for Conditional Use hearings.

Update on Capital Projects - Mr. Warner gave a brief PowerPoint® presentation on the Reiber House Project, the Frey Farm Landfill Capping Project and the Resource Recovery Facility Tipping Floor Expansion Project.

Mr. Musser asked how much topsoil is put on top of the capping material.

Mr. Norris replied that there is a minimum of 6" of soil required and the material is on-site.

Ms. Bare asked if topsoil was purchased from the Barley property for the capping project.

Mr. Norris replied no.

Relocating and Renovating the Reiber House - After discussion and on motion by Mr. Ebel, second by Mr. Frost and unanimous vote, the Board approved the move and relocation of the Reiber House to the location as shown on Attachment A; the coordination of this project by the Historic Preservation Trust (HPT) of Lancaster County; and entering into a long term lease with Manor Township designating them as the party responsible for the coordination and general well-being of the structure and the lot it sits on.

Mr. Gordon asked for more details about the arrangement.

Mr. Warner said HPT had received a price from a contractor. HPT would then send the Authority invoices that would be substantiated, then pay HPT, who would in turn pay the contractors.

Mr. Gordon suggested the Authority specify to HPT some requirements such as ensuring the contractor had the right insurances and indemnifications for the Authority.

Mr. Warner said the Authority would do that as well.

Mr. Musser concurred with Mr. Gordon’s comment.

Mr. Wood asked how the house would be moved.

Mr. Warner said the structure would be picked up from the first floor level, and that instead of the full basement it currently had, there would be a 5' crawl space.

Mr. Warner added that the Authority had pledged in-kind services, such as fill, if needed.

Solid Waste Within the Enola Low Grade Line Right-of-Way - On motion by Mr. Rosier, second by Mr. Kassees and unanimous vote, the Board authorized LCSWMA staff to accept non-hazardous solid waste collected from within the right-of-way of the Enola Low Grade Line during the development of the County Trail at no cost, which is delivered in compliance with the directives of Resolution 1995-2.

Resolution No. 2004-2 - On motion by Mr. Houck, second by Ms. Hammel and unanimous vote, the Board adopted Resolution No. 2004-2. The resolution authorizes the Executive Director and Solicitor to take all actions necessary to acquire the Robert F. Byers, Jr. Property, either by condemnation or by purchase in lieu of condemnation, pursuant to the Letter Agreement dated June 21, 2004, for the sum stated therein or such amount approved by the Board’s Executive Committee, and all actions previously taken by the same, in connection with such acquisition.

Ms. Kladky asked what the Authority planned to do with the property.

Mr. Warner said the property would be sold if an issue regarding a drain field was resolved.

FINANCE DEPARTMENT - Ms. Olson reported on the following:

• July results show that revenue is over budget and expenses are under budget. The revenue is due to the tonnage being over budget. Expenses are under budget due to items being budgeted in 2004, which will happen either later this year or next year. An additional $1.5 million has been added to the restricted reserve fund.

• LCSWMA Preliminary Results Actual vs. Budget - All Programs for the Month ended July 31, 2004 and June 30, 2004.

• LCSWMA Accounts Receivable Report and Past Due Detail Analysis as of July 31, 2004.

• Approval of Disbursements - On motion by Mr. Frost, second by Mr. Ebel and unanimous vote, the Summary of Disbursements for June 2004 and July 2004 in the total amount of $8,372,350 was unanimously approved.

ADMINISTRATIVE SERVICES DEPARTMENT - Mr. Lausch reported on the following:

• Summary Tonnage Report - The tonnage and revenue were over 10% ahead of budget in July, primarily because of the MSW deliveries. Refuse was 3,053 tons over budget and Construction and Demolition waste was 2,318 tons ahead of budget for the month. July is the second consecutive month that the Authority took over 9,000 tons of Construction and Demolition waste, which is the highest two months in over 10 years. Residual Waste was 2.78% below budget for the month.

• Residual Waste - Three-year Waste Agreements were renewed with the Viking Cabinetry Group and Quality Aluminum Castings. The Agreement with Lancaster General Hospital is in the process of being finalized. Revenue from these accounts should be approximately $43,000 per year.

• Recycling Program - Staff has completed summarizing the data for the 904 Performance Grants for 2003. This is done for 44 municipalities, as well as the Authority. The estimated grant payout this year will be approximately $1.2 million, which is 11% more than was awarded to the County in 2002.

Staff is working on a project with Armstrong World Industries to increase the amount of paper fiber recycled in the County. Meetings are being held and a plan developed with the Ceiling Plant, as well as the telephone companies who publish directories, to establish County-wide drop-off programs for Old Telephone Books. There are over 700,000 books distributed in Lancaster County, or about 900 tons of telephone books for disposal each year.
Insurance Program - Proposals are due next week for the renewal of the property and casualty coverages. Quotes are expected from Murray Insurances as well as FMGlobal. The proposals will be brought to the Board for action in September.

Approval was received from the Department of Labor and Industry on the Authority’s Safety Plan, making the Authority eligible for a 5% discount, which saves about $8,000 on the Workers Compensation Policy premium.

• Compensation and Benefits - An employee activity survey was conducted to determine satisfaction with the current activities of the Authority and to see if there was interest in any additional activities. As a result, a blood drive has been scheduled for September 2nd. It will be held at the RRF and Harrisburg Pike office, and will be open to the public.

Ms. May asked if the phone books would generate income for the Authority, or would be a service to the community.

Mr. Lausch said that the Authority would coordinate the project, and provide publicity for it; Armstrong and the phone companies would contract with the hauler.

Mr. Warner said the Authority would not get any money out of it.

COMMUNICATIONS PROGRAM - Ms. Buller reported on the following:

A press conference was held to unveil the new Transfer Station design on July 14th. Four Board Members were in attendance. Commissioner Dick Shellenberger, John Fry, Ron Bailey and Lisa Riggs were also on hand to make comments in support of the project. The event was well covered by the media.

A meeting was held with the new Sustainability Intern at Franklin and Marshall College. She is charged with increasing recycling on campus in the academic and residential buildings.

Representatives from the Lancaster County Historical Society will be at the September Board meeting to give a presentation on the “Along the Susquehanna River” exhibit that will explore the Susquehanna River’s cultural influence in the County.

The Summer Hauler Newsletter will be mailed next week.

Mr. Rosier commented that the press conference and the newspaper articles regarding the new Transfer Station were very well done.

OPERATIONS DEPARTMENT - Mr. Zorbaugh reported on the following:

• Administrative - Considerable amount of time was spent with Gannett Fleming reviewing Intermediate Design Drawings of the Transfer Station. The specifications are 8" thick and there are over 70 drawings.

On July 13th, the Authority, along with Gannett Fleming, attended DEP’s LMIP meeting which is a required meeting for all municipal township officials that would be impacted by this project. The meeting was not heavily attended but positive feedback was received from those in attendance.

DEP has started their review of the Transfer Station application and word has been received that the application is administratively complete.

The Authority had several staff openings triggered by the retirement of Jim Groff. Mr. Groff was employed at the Authority for 36 years. All positions have been filled.

Mr. Warner added that Mr. Groff drove over 2 million miles, hauled 2 years worth of garbage, and never had an at-fault accident.

• Facility Operations - At the request of some of the larger commercial haulers, the RRF was open on Monday, July 5th to receive waste from 7:00 a.m. to 4:00 p.m. There were 120 vehicles and 900 tons of trash delivered that day.

There was some scale work done at the RRF which should extend the life of scale for another 10 years.

A new scalehouse is being built at the Frey Farm Landfill; however, we must continue to operate in the existing scalehouse. An Authority mechanic is fabricating a steel frame and a contractor will come in and build the new scalehouse on that steel frame. When the construction is completed, we will lift off the existing scalehouse that is mounted on railroad irons and set the new one in place.

• Safety - There were no significant or lost-time accidents during the month of July.

Mr. Houck noted that by having Mr. Norris and Mr. Zorbaugh review the Transfer Station documents it would eliminate a lot of change order work. He commended them on their efforts.

• Purchase and Construction of a Pole Building - On motion by Mr. Frost, second by Ms. Hammel and unanimous vote, the Board approved the award of the contract for the construction of a Pole Building to Unlimited Structures, Ephrata for the contract price of $19,222. This item was included in the 2004 Capital Budget.

• Purchase of a Used Truck Cab and Frame - On motion by Mr. Houck, second by Mr. Gordon and unanimous vote, the Board awarded the contract for the purchase of a Used Truck Cab and Frame to North East International for a 1999 International 4900 for the bid price of $28,700.

RRF CONTRACT ADMINISTRATION DEPARTMENT - Mr. Forster reported on the following:

• Site Operations - Electric revenues for July were $1,098,740, which is $57,151 over budget, since two of the boiler mini-outages previously scheduled for July were completed in June.

Unit #1 and Unit #2 were the only boilers to incur unscheduled downtime. Unit #1 was down to replace 5 grate bars. Unit #2 had a minor furnace tube leak. The boilers ran 97% of the time during the month.

The ferrous recovery system removed 588 tons of metal from the ash for recycling.

• Regulatory Activities - Randy Weiss of DEP was on site twice for inspections in July. He was pleased with what he saw.

Worked throughout the month with Steve Jenness, Covanta’s Environmental Compliance Engineer, on the preparation of the facility’s Title V permit renewal application to DEP.

Covanta submitted final stack test results to DEP. Dioxin emissions were found to be 97% below permit and mercury 99% below permit. The ambient air downstream of the facility was found to be 92% below permissible concentrations.

The 2nd quarter RRF tonnage report was submitted to DEP. Average deliveries during the quarter were 980 tons per day.

Other Activities

Construction on the tipping floor expansion project is proceeding on schedule. The work should be completed by the end of October.

TECHNICAL SERVICES DEPARTMENT - Mr. Norris reported on the following:

• Capital Projects

Transfer Station Design work continues with Gannett Fleming. The Permit Application for the new Transfer Station was submitted to PaDEP and has been deemed administratively complete. Work has begun on an RFQ process qualifying contractors for the Transfer Station. The schedule is to have bid documents ready by October and award the contract at the November Board meeting. PaDEP has indicated that establishing a relocated HHW Facility may involve more extensive permitting efforts than planned, but the Authority continues efforts to keep existing approvals intact.

Phase 3 Capping work is proceeding very well. Weston Solutions is on track to complete the project by September 30.

CFI Project work is on-going with ARM, including the installation of the groundwater remediation system. Efforts over the next several months will also include abandoning wells which are no longer necessary.

• Technical Support - Final revisions and a Request for Proposals for the Laboratory Analytical and Field Services as required by the Authority will be completed in August.

The NPDES renewal application for the FFLF stormwater discharge will be submitted in August for a five-year renewal. Also, the Landfill Title V permit is up for renewal and that application will be submitted in October for the five-year air permit.

CITIZENS ADVISORY COMMITTEE

Mr. Warner reported that the CAC met on Wednesday, August 11, 2004 and that the first 45 minutes involved a discussion on the ethanol project, and correspondence that was directed to Mr. Warner and copied to the CAC members. The CAC then went on a tour of the Resource Recovery Facility to see the Tipping Floor Expansion Project and the Frey Farm Landfill to see the Capping Project.

Ms. Bare asked about the next scheduled CAC meeting.

Mr. Warner responded that it would be on October 27, 2004 at 1:00 p.m.

OTHER BUSINESS

Mr. Warner said it would be necessary to meet in Executive Session to discuss a real estate matter.

Ms. Kladky asked if the Board would come back into session after the Executive Session.

Mr. Warner replied yes, but only in order to adjourn.


EXECUTIVE SESSION

The Board went into Executive Session at 9:30 a.m. to discuss a real estate matter.

ADJOURNMENT

The regular Board meeting reconvened at 10:10 a.m. There was no further business to come before the Board. On motion by Mr. Wood, second by Mr. Rosier and unanimous vote, the Board meeting adjourned at 10:15 a.m.

APPROVED BY THE BOARD OF DIRECTORS OF THE LANCASTER COUNTY SOLID WASTE MANAGEMENT AUTHORITY THIS 17TH DAY OF SEPTEMBER 2004.

Barbara B. Hammel, Secretary