Minutes of the Board of Directors Meeting
December 14, 2001

The Board of Directors of the Lancaster County Solid Waste Management Authority met on Friday, December 14, 2001 at 7:30 A.M. at the Authority office, 1299 Harrisburg Pike, Lancaster, PA.

ATTENDANCE

Board of Directors present were: Chairman Ebel, Clark, Frost, Hammel, Houck, Musser, Snoke and Wood. Absent was Kassees. Staff present were: Warner, Buller, Forster, Lausch, Norris, Olson, Zorbaugh and Dougherty. Also present were: Solicitor George T. Brubaker of Hartman Underhill & Brubaker; Jim Klecko, Covanta Energy; and citizens as listed on the attached sign-in sheet.

APPROVAL OF THE MINUTES

Mr. Ebel asked if there were any additions or corrections to the minutes of the November 16 meeting. Mr. Wood moved that the minutes be approved as printed. Mr. Musser seconded. Mr. Ebel called a vote; the motion passed unanimously.

NOMINATING COMMITTEE REPORT - Mr. Ebel stated that he mistakenly appointed himself to the Nominating Committee; therefore, there will be no report from the Nominating Committee. Nominations will be accepted from the floor for the four officer positions.

Mr. Frost nominated the following members:

Chairman - Bill Ebel Treasurer - Barbara Hammel

Vice Chairman - John Musser Secretary - Lester Houck

Mr. Ebel asked for additional nominations. Hearing none, the nominations were closed and a unanimous ballot cast.

Mr. Ebel announced that there would be an executive session after the board meeting to discuss personnel and litigation issues. He then opened the meeting for public comment.

PUBLIC COMMENT

Leslie Osborne (109 Oak Road) asked for further clarification on permits with LASA, in regards to the new EPA standards.

Mr. Norris explained about EPA regulations and standards.

Ms. Osborne asked about the permitting process for liquid waste and referenced a permit application from the Authority in regards to Manor Township and John Barley.

Mr. Ebel and Mr. Warner explained why Manor Township and John Barley were made aware of the permit application.

Erica Runkle (3348 River Road, Indiantown Precinct) asked about recycling plastic and suggested some ways the Authority might highlight the recycling initiative.

Mr. Warner clarified and explained the Authority's policy on recycling plastic.

Mary Glazier (Conestoga) asked the following questions about the budget.

The first was in regards to a projected decline in revenue for MSW and residual waste.

Mr. Ebel and Mr. Warner explained that the economy is down, and that the Authority lowered their fee $2.00/ton.

Ms. Glazier asked about an increase in recyclables revenue.

Mr. Warner explained that it was expected revenue if/when the non-ferrous recovery system begins operation.

Ms. Glazier asked about the Liquid Treatment Plant (LTP).

Mr. Warner explained the initial strategy for the LTP, and its probable phasing out.

Ms. Glazier asked about the increase of grant money in the budget.

Mr. Warner explained it was due to the ongoing development of the CFI/Brownfield property.

Ms. Glazier asked about the line item for 'miscellaneous income'.

Mr. Warner explained that the miscellaneous income was likely rentals, etc. Mr. Warner offered to explain more line items in detail if anyone cared to make an appointment with him.

Ms. Glazier asked about increases in operations/administration at the transfer station, and in salaries and wages.

Mr. Ebel and Mr. Warner explained that a communications manager, an additional recycling person and 2 drivers had been hired.

Ms. Glazier asked about the increase in the budget for consulting.

Mr. Warner explained that it included the hiring of a safety consultant and ISO 9001 certification consultant.

Ms. Glazier commented on the increase in the line item for public education.

Brad Hepfner (930 Letort Road) asked about truck traffic on Letort Road.

Mr. Zorbaugh clarified the Authority's policies and procedures regarding the above.

Ms. Osborne asked about Edie trucks on Conestoga Boulevard.

Mr. Warner responded that it might be due to an Edie yard located off of Prospect Road.

Fred Daum (New Holland Pike) expressed his appreciation in being able to attend the meetings, and asked about the function of the CAC and when they meet.

Mr. Warner explained when the CAC last met and why, and went on to explain what their role was with the Authority.

Penn Glazier (Conestoga) commented on out-of-county waste at the landfill (in regards to the bus tour at the Frey Farm Open House '01), the Authority's mission statement, LESCO, and the nature of a public authority.

Mr. Houck commented on the out-of-county waste issue, reflecting the impact the Carbone decision had on the way the Authority had to change its way of doing business.

Cabell Kladky (Conestoga) commented on the need for the Authority to educate the public.

Ms. Osborne commented on the FFLF Open House bus tour, and cited some figures in regards to the delivery of PCEL materials from out-of-county.

Mr. Warner explained that the Authority has never denied that it takes material from out-of-county for use as protective cover.

Ms. Glazier asked about LESCO, and its relationship to the Authority.

Mr. Warner explained that it would be highly unusual for a public authority to market their services the way a private company would.

Ms. Glazier asked about additional waste going to the landfill since the Resource Recovery Facility is at full capacity.

Mr. Snoke observed that the question of out-of-county waste at the incinerator, and how it will diminish as Lancaster MSW grows, has been explained to the public at numerous board meetings in the past.

Mike Bare asked about taking out-of-county waste at the incinerator when MSW in Lancaster fills it to capacity.

Mr. Ebel explained some of the reasoning behind taking out-of-county waste.

Ms. Osborne asked about the analysis and nature of PCEL materials.

Mr. Warner explained that every waste stream is reviewed and approved by the DEP before it is accepted.

Ms. Kladky asked about the conditions in the 1986 Zoning Board decision, and if any board member remembered adopting a resolution relative to those conditions.

Mr. Brubaker advised that the question was under litigation and would be addressed in due course.

Mr. Ebel called an end to the public comment session.

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

Mr. Warner noted that numerous waste bills passed the House unanimously on November 19, (Environmental Day). Issues covered in these bills included landfill moratoriums, waste transportation and host municipality agreements. It is not expected that these bills will go anywhere in the Senate. People in the waste industry believe that the only issue that may get through is waste transporter related.

FINANCE DEPARTMENT - Ms. Olson reported on the following:

• LCSWMA Preliminary Results Actual vs. Budget - All Programs for the Month ended November 30, 2001.
  
  
• LCSWMA Accounts Receivable Report and Past Due Detail Analysis as of November 30, 2001.
  
  
• Approval of Disbursements - On motion by Mr. Frost, second by Mr. Snoke and unanimous vote, the Summary of Disbursements for November 2001 in the total amount of $3,906,763.57 was unanimously approved.

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

• Summary Tonnage Report - During November, total revenue tons received were 43,265, or 1,337 less than budgeted. The Resource Recovery Facility received 32,044 revenue tons, or 870 tons below budget for the month. Revenue tons to the Landfill were 11,147, or 483 less tons than budgeted. Total system tons year-to-date are 527,951, which is 7,916 tons or 1.52% ahead of budget.
  
  
• Solid Residual Waste - A new three-year Waste Services Agreement was entered into with Wilbur Chocolate for both the Lititz and Mt. Joy plants. Wyeth-Ayerst in Marietta has issued us a new purchase order for disposal of their egg waste in 2002. We are finalizing a new three-year Agreement with Tyson Foods and a two-year extension to the Agreement with RR Donnelley & Sons. The annual disposal revenue from these four accounts is projected to approximate $500,000.
  
  
• Liquid Residual Waste - During November, the Liquid Treatment Plan received 511,782 gallons of waste. Revenues were $26,304.
  
  

• Recycling - North Star Steel, our market for RRF ferrous, informed us that the November price dropped to $22.77 per ton, which put us around the breakeven point after transportation costs. From March through October, the price was $28.13 per ton, which provided us revenue of $5.13 per ton after transportation. To see how other waste-to-energy facilities are faring currently, we contacted Covanta plants in Maryland and Virginia as well as Montenay plants in Montgomery and York County, PA. They are presently either breaking about even or paying to get rid of their ferrous.
  
  
• Section 457 Plan - After discussion and on motion by Mr. Houck, second by Ms. Hammel and unanimous vote, the board approved establishing a Code 457 Eligible Deferred Compensation Plan for the benefit of LCSWMA employees and that the Pension Plan Administrative Committee be directed to work with the Solicitor and Trustee, Fulton Bank, and take the steps necessary to establish and administer the Code 457 Eligible Deferred Compensation Plan in accordance with Resolution 2001-7.
  
  
• Resolution No. 2001-7 - On motion by Mr. Houck, second by Ms. Hammel and unanimous vote, the board adopted Resolution No. 2001-7 authorizing the adoption of the Lancaster County Solid Waste Management Authority 457 Eligible Deferred Plan and the amendment of the Lancaster County Solid Waste Management Authority Pension Plan.

OPERATIONS DEPARTMENT - Mr. Zorbaugh reported on the following:

• Administrative - The Annual Haulers meeting was held on November 7^th to review changes to LCSWMA rules and regulations as well as discuss any operational issues at LCSWMA facilities. The response from those attending was positive with no major concerns.
  
  
• Landfill - The Frey Farm Facility was inspected by PaDEP on November 6^th and again on November 19^th. There were no operational violations found during either inspection.
  
  
• Transfer Station - Weighmaster training began on the new scalehouse program. Final adjustments are being made to the program prior to its installation at all our facilities.
  
  
• Resource Recovery Facility - One of two ash driver positions was filled in November. Interviewing continues for the second vacancy.
  
  
• Household Hazardous Waste - November saw the second-highest participation month of the year with 336 customers dropping off material. The unseasonably mild weather and increased media exposure have both been contributing factors.
  
  
• Safety - There were no notable accidents to report at any of the facilities in November.

Preliminary work began with the safety consultant, Safety Performance Systems, to review our safety program. Almost all their work will take place after the new year.

• Purchase of Replacement Roll-Off Containers - On motion by Mr. Snoke, second by Mr. Musser and unanimous vote, the board approved the award of the contract for the purchase of six (6) roll-off containers to the low bidder, Winters Equipment Corporation, for the bid price of $20,835.
  
  

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

• Site Operations - Electric revenues for November were $1,088,238, or $168,238 ahead of budget.

Unit #2 was the only boiler to have unscheduled downtime during the month.

Unit #1 and #3 ran the entire month without incident. Overall, average boiler availability for November was 96.9%.

Covanta processed 32,366 tons of waste in November, up 2% from October.

• Regulatory Activities - Fourth quarter ash sampling was conducted at the facility from November 5 - 11. The preliminary results show that lead was not detected in any of the samples and cadmium was found in only three of the seven samples. The average lead concentration for ash generated during 2001 is 0.92 milligrams per liter, or 82% below the federal regulatory threshold. The average cadmium concentration is 0.37 mg/l, or 63% below the regulatory limit.
  
  
• The final stack testing results have just been received and they show that pollutant concentrations are well below allowable levels.
  
  
• Randy Weiss of DEP visited the facility on November 9^th for his monthly operational inspection. There were no violations to report.
  
  
• Other Activities - Work continues on the Authority's Transportation Compliance Plan. The plan is currently undergoing final revisions, and the goal is to have it operational, on a trial basis, by January 2, 2002.

TECHNICAL SERVICES DEPARTMENT - Norris reported on the following:

• Capital Project Administration - The Phase 2 Capping Project is 99.9% complete with hydro-seeding and punch list work being completed.

IT's personnel have completed the FFLF gas sampling which will assist in the determination of a suitable gas utilization project. The temporary gas flare is on site and will run for 30 days.

The installation of 32 geoprobes and 3 wells has been completed at the CFI Property.

• Creswell Landfill Overfill Study Peer Review; Award of Professional Services Agreement - On motion by Mr. Houck, second by Ms. Hammel and unanimous vote, the board approved entering into a Professional Services Agreement with G. N. Richardson and Associates, Inc. in an amount estimated at $56,060 for services necessary to complete the Peer Review tasks associated with the Creswell Landfill Overfill Study.
  
  
• Frey Farm Landfill; Cell 5 Pre-Construction Tasks; Award of Professional Services Agreement for Engineering Services - On motion by Mr. Wood, second by Ms. Hammel and unanimous vote, the Board approved entering into a Professional Services Agreement with ARM Group Inc. in an amount estimated at $45,000 for services necessary to complete the Frey Farm Landfill Cell 5 Pre-Construction Tasks.

CITIZENS ADVISORY COMMITTEE

Citizens Advisory Committee (CAC) 2002 Discussion Agenda - Mr. Warner reviewed the background of the CAC. On motion by Mr. Frost, second by Mr. Snoke and unanimous vote, the board requested the CAC review, deliberate, study and provide advice and commentary on the following topics:

1. Review the progress of ARM Inc. 18 - 24 month study of various Creswell Landfill overfill alternatives.
2. Prior to making upgrades to the existing transfer station, update information including: waste origin; patterns from within Lancaster County; vehicle capabilities/unloading patterns; types of waste received; and possibly the future need for a small satellite transfer station(s).
3. Assess recyclable markets, material types, economics and other factors that may come into play to increase the existing diversion rate to meet or exceed the 35% recycling rate by 2003.

EXECUTIVE SESSION

After a brief recess, the Board of Directors went into Executive Session at 9:10 A.M. to discuss real estate, litigation matters and personnel issues.

The Executive Session adjourned at 10:15 A.M.

OTHER BUSINESS

There was no further business to come before the board.

ADJOURNMENT

On motion by Mr. Musser, second by Ms. Hammel and unanimous vote, the board meeting adjourned at 10:20 A.M.

APPROVED BY THE BOARD OF DIRECTORS OF THE LANCASTER COUNTY SOLID WASTE MANAGEMENT AUTHORITY THIS 15^TH DAY OF MARCH 2002.

Lester O. Houck, Secretary