Minutes of the Board of Directors Meeting
December 13, 2002

The Board of Directors of the Lancaster County Solid Waste Management Authority met on Friday, December 13, 2002, at 7:30 a.m. at the Authority office, 1299 Harrisburg Pike, Lancaster, PA.

ATTENDANCE

Board of Directors present were: Chairman Ebel, Frost, Hammel, Houck, Kassees, Musser, Rosier, Snoke and Wood. 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; Ad Crable, Lancaster New Era; and citizens as listed on the attached sign-in sheet.

APPROVAL OF THE MINUTES

Mr. Ebel asked about additions or corrections to the minutes of the November 15, 2002 meeting. Mr. Wood moved that the minutes be approved. Mr. Kassees seconded. Mr. Ebel called a vote; the motion passed unanimously.

PUBLIC COMMENT

Ms. Cosentino (232 Oak Road) asked about the next scheduled CAC meeting.

Mr. Ebel replied that it was scheduled for January 29th.

Ms. Cosentino asked if ARM would be presenting a report at that time.

Mr. Warner replied the agenda had not yet been determined.

Ms. Cosentino asked about ARM's Macrobinvertebrate study.

Mr. Warner said it would be part of the complete study.

Ms. Glazier (269 Chestnut Grove Road) asked that she go on record with the suggestion that hunting privileges be reinstated for Authority employees at the Landfill.

Ms. Glazier handed a videotape to Chairman Ebel called "The Castle", and requested that the Board view it.

Mr. May (100 Red Fox Road) referenced a for-profit corporation that was formed by St. Joseph's Hospital, and suggested that a similar relationship existed between the Authority and LESCO. Mr. May asked that LESCO's financial records be made public.

Mr. Ebel asked for further public comment. There was no further public comment at that time.

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

• Farmingdale Road Property - An initial meeting was held with George Marcinko, East Hempfield Township Manager, concerning future use of the Farmingdale Road Property. The Township and Authority agree in principle to use the land for passive recreation in conjunction with a greenway development along the Little Conestoga Creek. It has been agreed that an Ad Hoc working committee be formed consisting of representatives of LCSWMA, East Hempfield Township, and Manheim Township
  
  
• Covanta Bankruptcy - Covanta clients, including LCSWMA, have been trying to work out an arrangement to be better informed about the details of Covanta's progress through their Chapter 11 proceedings. Covanta has agreed to an initial meeting in New York on January 15th.
  
  
• New Transfer Station - R. W. Beck has been hired by amending an existing agreement for consulting services provided for the waste-to-energy plant. They will be preparing the Request for Proposals that will go out to consulting companies who will propose the engineering and design for the new transfer station. Management will be visiting transfer stations in January.

FINANCE DEPARTMENT - Ms. Olson reported on the following:

• LCSWMA Preliminary Results Actual vs. Budget - All Programs for the Month ended November 30, 2002.
  
  
• LCSWMA Accounts Receivable Report and Past Due Detail Analysis as of November 30, 2002.
  
  
• Approval of Disbursements - On motion by Mr. Frost second by Mr. Musser and unanimous vote, the Summary of Disbursements for November 2002 in the total amount of $4,092,397 were unanimously approved.

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

• Summary Tonnage Report - During November, the total tip fee revenues exceeded budget by $192,074. Total revenue tons for the month were 46,408 tons or 4,054 more tons than budgeted. Year-to-date 522,818 revenue tons have been received which is 19,583 tons or 3.89% ahead of budget.
  
  
• Residual Waste - During November, a new Waste Services Agreement was entered into with Skyline Corporation-Ephrata for their manufactured home waste. LCSWMA is working on renewing seven other Agreements before the end of the year.
  
  
• Recycling - Municipal recycling data for the first six months of 2002 and comprehensive informational packets were distributed to all thirty eight municipalities with curbside programs. Meetings with these municipalities took place in November, and will continue in December, to discuss the activities of their particular programs and to encourage data collection efforts.
  
  
• RRF Ferrous Marketing Agreement - The marketing agreement with Summit Resources Group (SRG) was renewed for an additional six months. Ferrous pricing continues to be very weak, however SRG is still able to move our material and pay us a small fee.
  
  
• Insurance - The GSIF Board of Directors met on November 4. Claims expenses amounting to $47,916 were reviewed and reimbursement to the Authority was approved. Since the Authority is now commercially fully insured for pollution liability, the Pollution Occurrences Account has been closed and the funds transferred to the Other Claims Account.
  
  
• Compensation/Benefits - The renewal premium has been received for the long term disability policy that provides coverage for all full-time Authority employees. The premium increased $1,680 per year. This is the first premium increase in five years.
  
  
• Employee Meetings on Policies and Benefits - During December, meetings will be held with each site to discuss the revisions to the Authority's employment policies, the Section 125 Plan, the 457 Plan, enhancements to the EAP program and other benefit changes for 2003.
  
  
• Revised Public Information Policy - On motion by Ms. Hammel, second by Mr. Frost and unanimous vote, the Board adopted the revised Public Information Policy and the Access to Public Records Notice prepared by the solicitor in response to revisions to the Pennsylvania Right-to-Know Act. The motion included one revision on page 4, Request from the Media, first paragraph, last line the word designate was changed to designee to maintain consistency throughout the document.

COMMUNICATIONS PROGRAM - Ms. Buller reported on the following:

• A meeting was held with JPL Productions to review the general guidelines on the educational video. Site visits will be scheduled to provide them with the opportunity to familiarize themselves with the details of the Authority's operations.
  
  
• Work was finalized on two newsletters during November. Waste Matters, the hauler newsletter and the Garbage Gazette, the employee newsletter.

OPERATIONS DEPARTMENT - Mr. Zorbaugh reported on the following:

• Administrative - Staff hosted a hauler meeting to go over the changes to the Authority's Rules and Regulations for 2003.
  
  
• Along with Tim Breneisen, met with and toured the Cumberland County Solid Waste Authority yard waste shredding facility.
  
  
• During November, the Authority received its state Waste Tire Transporter license required to transport tires in the State.
  
  
• Facility Operations - Basic radiation monitoring training was held for the site personnel at the Resource Recovery Facility and Frey Farm Landfill. On-site training will occur in December.
  
  
• Preparation has begun for the HHW expanded operating hours for 2003. The facility will be open from 8:30 a.m. to 3:00 p.m. Monday through Friday and the second and fourth Saturday of each month from 8:00 a.m. to 12:00 Noon.
  
  
• Safety Program - During the month of November, there were no notable accidents to report at any of the facilities.
  
  
• The Safety Incentive Program is being revised to focus on rewards for positive safety behavior for individuals, work groups and all facilities combined.
  
  
• Purchase of two (2) New Pickup Trucks, One (1) with Snow Plow - On motion by Mr. Rosier, second by Ms. Hammel and unanimous vote, the Board approved the purchase of two new Ford F-250 Pickups, one with a snow plow, to Phillips Ford for the bid price of $41,637.

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

• Site Operations - Electric revenues for November were $1,061,650, or $27,650 ahead of budget. Budget revenues were exceeded since the units were run at 2% higher than budgeted steam rating.
  
  Overall, average boiler availability for November was 97%.
  
  The ferrous recovery system removed 508 tons of metal from the ash residue. It is anticipated that we will recover about 6,000 tons for the year, which is, on average, about 17 tons per day for every day of the year.
  
  Covanta processed 31,106 tons of waste in November.
  
  
• Regulatory Activities - Randy Weiss of DEP was on site for an inspection on November 18th. He was pleased to see that Covanta had been able to do periodic drawdowns in the pit. His report contained no notices of violation.
  
  Semi-annual stack testing began on November 18th and continued for the rest of the month. Early results look good; final results will be available by February 2003.
  
  
• Site Improvements - Covanta continued with its site paving projects, in part to get ready for the upcoming radiation monitoring program, but also to continue with its plant improvement program. The paving and regrading at the recycling drop-off area at the entrance to the facility were completed, and the recycling container was moved back so that people dropping off their recyclables can do so out of the way of entering and exiting truck traffic. Covanta also began its project to rebuild the tipping floor curbing.

Chairman Ebel recognized Ms. May

Ms. May asked about radiation monitoring.

Mr. Ebel explained that the State was mandating it as part of new industry regulations.

Mr. Warner added that Pennsylvania was the only state required to do radiation monitoring, and that most of the radiation came from personal medical procedures.

Mr. Norris added that the system was designed to monitor all levels of radiation. He explained that when an alarm sounded, Authority personnel would examine the vehicle with special equipment to determine the type and source of the radiation.

Ms. May asked if the monitor was able to detect radiation inside the container.

Mr. Norris responded in the affirmative.

Mr. Warner added that the State had a comprehensive procedure to follow, and that in the vast majority of the cases, permission was granted by the State to dispose of the waste in the Landfill because the radiation levels were very low.

Mr. Frost asked about the procedure when a truck triggered an alarm.

Mr. Norris replied that a standard procedure had been outlined and would be posted in the scale houses, and that Authority personnel would be trained. He added that when a truck triggered an alarm, the truck would pass between the monitoring equipment a second time to ensure it wasn't an equipment malfunction. If the alarm was triggered a second time, the truck would be put off to the side and trained Authority personnel would use hand-held monitors to isolate the source of the radiation. It was expected that in many cases the driver would be the source of the radiation if he/she had undergone a recent medical procedure. The DEP would advise the Authority on whether it could be handled on site, or to wait for DEP officials to arrive.

Mr. Warner added that most of the alarms would be routine; low-level radiation from benign sources, but that the system was designed to protect against the slim chance of something highly radioactive from being disposed of improperly.

Mr. Norris noted that radiation was a naturally occurring phenomenon and people were exposed to it every day in many ways i.e., watching television.

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

Capital Project Administration

1299 Renovations - The new General Contractor has been working on the 1299 Office Renovation Project. The project should be finishing up shortly.

Cell 5 Construction - On motion by Mr. Snoke, second by Mr. Kassees and unanimous vote, the Board approved entering into an Agreement with Donald M. Durkin Contracting, Inc. in the amount of $4,130,000 for Cell 5 construction.

The Board also approved retaining ARM Group for the Professional Services (resident engineer, construction quality control/assurance and certification report) required related to Cell 5 construction in an amount estimated at $345,000.

Mr. Snoke asked about the financial stability of Donald M. Durkin, Inc.

Mr. Norris replied that their financial status is very good.

Mr. Snoke asked if the engineer has looked at the spread between companies.

Mr. Norris said that the engineer has reviewed the bids and the Authority has received their letter of recommendation to award the contract to Donald M. Durkin, Inc. He added that the Authority has never had a problem with any of their documents and have a good track record after building four cells.

ISO 14001 Environmental Policy Statement - On motion by Mr. Frost, second by Mr. Houck and unanimous vote, the Board approved the Environmental Policy for the Lancaster County Solid Waste Management Authority. The Environmental Policy indicates specific goals and commitments regarding environmentally related aspects of the Authority's work.

Field Services for Analytical Work - On motion by Mr. Houck, second by Mr. Snoke and unanimous vote, the Board approved entering into a Professional Services Agreement with American Westech for Field Services and Laboratory Analytical Work in an amount estimated at $114,403 for 2003.

CITIZENS ADVISORY COMMITTEE

Mr. Warner reported that the CAC meeting scheduled for December 11, 2002 was postponed until January 29, 2003. The CAC will receive an update on the Creswell Reuse Project by ARM Group Inc. at the meeting.

Mr. Ebel thanked Jim Klecko and the Covanta staff for their work and wished them the best in 2003.

NOMINATING COMMITTEE

On behalf of the Nominating Committee, Mr. Frost presented the following slate of officers for 2003:

Chairperson, John Musser
Vice Chairperson, Lester Houck
Secretary, Barbara Hammel
Treasurer, Kevin Snoke

Mr. Kassees seconded the nomination. A unanimous ballot was cast.

EXECUTIVE SESSION

Mr. Ebel stated that there was a need for an Executive Session to discuss a personnel matter.

OTHER BUSINESS

There was no other business to come before the Board.

ADJOURNMENT

The Board meeting adjourned at 9:36 a.m.

APPROVED BY THE BOARD OF DIRECTORS OF THE LANCASTER COUNTY SOLID WASTE MANAGEMENT AUTHORITY THIS 14th DAY OF FEBRUARY 2003.

Barbara B. Hammel, Secretary