Minutes of the Board of Directors Meeting
December 12, 2003

The Board of Directors of the Lancaster County Solid Waste Management Authority met on Friday, December 12, 2003, at 7:30 a.m. at the Authority office, 1299 Harrisburg Pike, Lancaster, PA.

Mr. Musser asked for a moment of silent meditation. The Pledge of Allegiance to the Flag followed.

ATTENDANCE

Board of Directors present were: Chairman Musser, Ebel, Frost, Hammel, Houck, Kassees, Rosier and Wood. Absent was Snoke. 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 Lancaster; Donald Robinson, Lancaster Conservation District; 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 November 14, 2003 meeting. Mr. Wood moved that the minutes be approved. Mr. Kassees seconded. Mr. Musser called a vote; the motion passed unanimously.

PUBLIC COMMENT

There was no public comment.

RECOGNITION PRESENTATION

Mr. Warner provided the Board with background information on Don Robinson who recently ended his term with the Citizens Advisory Committee (CAC). Mr. Warner said Mr. Robinson had served on the CAC for nine years, eight of them as Chairman.

Mr. Ebel said he and Mr. Houck had served with Don Robinson on the CAC and remembered Mr. Robinson as the person who would ask the tough questions, and make suggestions on how the Authority could do better.

Mr. Houck said he had known Don since he was an Ag Teacher and [that he] was known for his reputation and integrity. Mr. Houck said Mr. Robinson would be missed, and thanked him for all the help he provided over the years.

Mr. Musser presented Mr. Robinson with a framed certificate which stated, "In honor of your service to the Citizens Advisory Committee, in appreciation and gratitude for the nine years of distinguished service and leadership to the Authority".

Mr. Robinson thanked Mr. Musser and said he appreciated the recognition very much. He thanked all who made the Citizens Advisory Committee possible, and said that he believed the CAC was a very important part of the Authority because it served to represent different parts of the community.

NOMINATING COMMITTEE REPORT

Mr. Musser called on Mr. Wood for the Nominating Committee report.

On behalf of the Nominating Committee, Mr. Wood presented the following slate of officers for 2004:

Chairperson, John Musser

Vice Chairperson, Lester Houck

Secretary, Barbara Hammel

Treasurer, Mel Rosier

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

Mr. Warner stated that the financial results for the month were extremely positive due to continued high tonnages of Lancaster County MSW. The year should end with MSW 7% higher than last year.

• Covanta Bankruptcy - Covanta held a conference call with clients on December 2nd to discuss progress on their efforts to emerge from Chapter 11. Covanta has entered into a definitive agreement to be acquired by Danielson Holding Corporation. Under this arrangement, the management will remain intact and Covanta will continue to operate under our existing Service Agreement.
  
  Mr. Rosier stated that since Danielson was a holding corporation, they could spin it off to another firm.

  Mr. Warner agreed.

• Resolution No. 2003-8 - On motion by Mr. Ebel, second by Mr. Frost and unanimous vote, the Board adopted Resolution No. 2003-8. The resolution authorizes the Executive Director and Solicitor to take all actions necessary to acquire the Wallick Property either by condemnation or by purchase in lieu of condemnation pursuant to the Option to Purchase and Agreement for Sale of Real Estate dated December 28, 2000, and the subsequent Memorandum of Agreement dated March 2, 2001, for the sum stated therein, or for such other amount approved by the Board's Executive Committee, and all actions previously taken by the same in connection with such acquisition are ratified and approved.
  
  
• Resolution No. 2003-9 - On motion by Mr. Frost, second by Mr. Kassees and unanimous vote, the Board adopted Resolution No. 2003-9. The resolution authorizes the Executive Director and Solicitor to acquire the CFI Marketing Inc. property either by condemnation or by purchase in lieu of condemnation for the sum of $1.00.
  
  
• Resolution No. 2003-10 - On motion by Mr. Kassees, second by Ms. Hammel and unanimous vote, the Board adopted Resolution No. 2003-10. The resolution authorizes the Executive Director and Solicitor to acquire the Dean and Eileen Herr property on River Road in Manor Township, either by condemnation or by purchase in lieu of condemnation for the sum of $473,000.00.
  
  
• Resolution No. 2003-11 - Mr. Brubaker explained that the resolution is a technical resolution so that the debt and interest incurred with the Herr acquisition is tax exempt under the Internal Revenue Code. The resolution is required to be adopted in order to comply with Section 265-B.3.B. of the Internal Revenue Code. On motion by Mr. Houck, second by Mr. Rosier and unanimous vote, Resolution No. 2003-11 was adopted.
  

FINANCE DEPARTMENT - Ms. Olson reported on the following:

• LCSWMA Preliminary Results Actual vs. Budget - All Programs for the Month ended November 30, 2003.
  
  
• LCSWMA Accounts Receivable Report and Past Due Detail Analysis as of November 30, 2003.
  
  
• Approval of Disbursements - On motion by Mr. Ebel, second by Mr. Kassees and unanimous vote, the Summary of Disbursements for November, 2003 in the total amount of $4,538,208 was unanimously approved.

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

• Summary Tonnage Report - In November, total revenue tons were 42,951 tons and total tip fees were $2,649,040. We received 31,643 tons of MSW, which is 9% ahead of budget, due to refuse and construction/demolition waste continuing to be very strong in the County. The Resource Recovery Facility received 28,714 tons and the landfill 14,091 tons. Year-to-date, revenue tons are 526,879 tons, or about 3.6% ahead of budget.
  
  
• Residual Waste - A new five-year waste agreement has been entered into with R.R. Donnelley for their plant trash.
  
  
• Insurance - A meeting was held with the loss control representative from Guard, who is the Authority's Workers Compensation insurer, and claims were reviewed for the last three years. Last year was an exceptional year, with only $1,543 in claims.
  
  
• Resolution No. 2003- 13- On motion by Mr. Frost, second by Ms. Hammel and unanimous vote, the Board approved the Re-Appointment of Duane R. Reitz to a five-year term on the Government Self-Insurance Fund Board.
  
  
• Health Insurance Portability and Accountability Act (HIPAA) Compliance - On motion by Mr. Rosier, second by Mr. Houck and unanimous vote, the Board approved the adoption of the Policy for Management of Protected Health Information, Dental and Vision Plan Amendment, Employee Assistance Plan Amendment, and Certification of Plan Sponsor; and authorized the Executive Director and staff to take any other action necessary to comply with the HIPAA Privacy Rule by April 14, 2004.
  

Mr. Ebel said DEP may change the characterization of foundry sand.

Mr. Warner explained that DEP had a new policy concerning the beneficial use of foundry sand and that it was currently in the comment period which began November 29th. Mr. Warner said the policy made it easier for ferrous foundry sand to be used as fill under parking lots and highways. The push was made by the foundry association in Pennsylvania because they were not able to compete with foundries in other states who did not have to landfill their sand wastes.

COMMUNICATIONS PROGRAM - Ms. Buller reported on the following:

The Overview Brochure that was created for the Annual Report was inserted in the Intelligencer Journal on December 8th. Requests have been received from educators for copies of the brochure. The educational video was also sent with the brochure. A letter of introduction will be going out with the educational video and brochure to schools by the end of December or beginning of January.

Mr. Rosier stated that the publication inserted in the newspaper was extremely well done, and he has received positive comments. He commended the staff. Mr. Ebel agreed.

OPERATIONS DEPARTMENT - Mr. Zorbaugh reported on the following:

• Administrative - The Annual Haulers' Meeting was held in November. Information regarding tipping fees, capital projects and operational issues were discussed. A survey was given to all in attendance for a critique of our facility/administrative performance over the past year. The results of the survey were very favorable.
  
  Ms. Hammel commented that the Haulers' Meeting agenda looked very interesting and complemented Mr. Zorbaugh on coming up with the survey. She added that she looks forward to seeing the survey continued in future years.
  
  
• The Transfer Station redesign project has progressed, and Gannett Fleming is finalizing their design basis report. Work is starting on the layout of the buildings and the traffic studies are being completed.
  
  
• Work continues on the RRF tipping floor expansion. Drawings should be available to contractors shortly, with work starting in the Spring.
  
  
• Facility Operations - All facilities operated well during the month of November. DEP inspections were held at the RRF and FFLF, and both facilities were found to be operating well within regulatory compliance.
  
  
• Safety - There were no notable accidents to report at any Authority Facilities during November. However, there was an employee injury that occurred on November 12th that halted the 315 consecutive days worked without a lost-time accident.
  
  Confined Space Training was provided to all Authority staff who have involvement with this activity.

• Purchase of Aluminum Closed-Top Live Floor Trailers - On motion by Mr. Ebel, second by Mr. Rosier and unanimous vote, the Board approved the award of the contract for the purchase of two aluminum live floor trailers to J&J Truck Bodies for the contract price of $101,600.
  
  
• Purchase of Two (2) Tri-Axle Roll-off Trucks and Six (6) Tandem-Axle Truck Tractors with the Trade-in of Two (2) Tri-Axle Trucks and Six (6) Tandem-Axle Tractors - On motion by Mr. Houck, second by Ms. Hammel and unanimous vote, the Board approved the award of the contract for the purchase of two tri-axle trucks and six tandem-axle tractors along with the trade of eight trucks to the low bidder, Hollinger Mack, Inc., for a total contract price of $517,585.
  

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

• Site Operations - Electric revenues for November were $1,062.927, or $51,927 ahead of budget. The budget estimate was exceeded since all three units ran the entire month without downtime. To date, boiler availability is 90.9%, or just slightly above last year's average of 90.6%.
  
  Covanta maintenance personnel had to remove the steam-driven boiler feedwater pump from service after it was discovered that the pump's housing had cracked. Further investigation revealed that the blades on the pump's internal rotor had been severed from the shaft. The entire turbine and casing were sent to a speciality turbine repair shop for either repair or rebuild. The report from the shop indicated that the pump is a total loss. Covanta is presently investigating several options regarding pump replacement.

  The ferrous recovery system removed 641 tons of metal from the ash, or about 2% of the processed tons. The 2% is an industry standard and it has been achieved for the last six months.

• Regulatory Activities - Randy Weiss of DEP was on site for an inspection on November 20th. He did not observe any operational deficiencies during his inspection.
  The semi-annual stack testing was conducted at the facility on November 10 - 14. Preliminary results indicate that suspended and respirable particulate emissions were below permit limits.
  
• Other Activities - Mr. Leonard Grillo, P.E., a waste-to-energy consultant, has performed three HHV tests at the RRF. He has completed his calculations, and will be issuing a draft report and Executive Summary to the Authority.
  A meeting was held with Jim Klecko, Bob Strickland, Conoy Township Supervisor and Charles Emerick, Conoy Township Zoning Officer regarding obtaining a building permit for the expansion of the RRF tipping floor.

  Participated in facility audits with representatives from two residual waste generators. Both audits went well, and we should see continued as well as new business from these companies.

  Helped with the second tour of the plant for legislators from Delaware who are members of the state's House-Senate Sunset Committee. The committee is tasked with reviewing the effectiveness of various state agencies, which includes the Delaware Solid Waste Authority.

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

• Capital Project Administration - Cell 5 Construction - The contractor reached Substantial Completion on November 25th and is working on punch list items. We are beginning assembly of the Form 37 Construction Certification Documents for DEP submittal.
  
  
• Landfill Gas Project - This project reached Substantial Completion in late November.
  
  
• Landscape Buffer Project - In November, Substantial Completion was achieved on the Landscape Buffer Project as well.
  
  
• Transfer Station Design - No word has been received from DEP on the Permit Renewal Application; however, it was deemed administratively complete. Gannett Fleming continued work on the assembly of the permit modification application. This packet should be submitted to DEP in January.
  
  
• Facility Compliance and Assurance - DEP has verbally approved our Minor Modification for the RRF Tipping Floor Expansion.
  
  
• Approval has been received from SRBC to modify our consumptive use flow augmentation method. SRBC has indicated that LCSWMA will receive full credit for water pumped from the Cornwall Open Pit Mine by Elizabethtown during drought conditions to satisfy our permit obligation.
  

Mr. Warner reported that the CAC did not meet.

EXECUTIVE SESSION

Mr. Warner noted that there were two resolutions that would be considered by the Board after the Executive Session. Both resolutions dealt with issues that will be discussed in Executive Session. Resolution No. 2003-12 was in the public information packet. Ms. Dougherty distributed copies of Resolution No. 2003-14 to members of the Board and members of the public present.

Mr. Brubaker stated that Resolution No. 2003-12, depending on what was discussed in Executive Session, authorized proceeding with negotiations to settle the condemnation damages that were due to Lehman and Faulkner. The preliminary discussions were that the settlement might also involve the issuance of tax exempt debt that was approved, similar to what was just approved in connection with the Herr Property. Resolution No. 2003-14 is a technical resolution dealing with the Internal Revenue Code requirements that would be needed to comply with in order to issue that debt. The reason to take action now is because there is no plan to have a Board meeting in January 2004, and the Authority might be able to conclude this business before February. If it is not concluded before February, the specific terms will come back to the Board.

The Board of Directors went into Executive Session at 9:00 a.m. to discuss personnel and real estate matters.

OTHER BUSINESS

The regular Board meeting reconvened at 10:05 a.m.

• Resolution No. 2003-12 - On motion by Mr. Kassees, second by Ms. Hammel and unanimous vote, the Board adopted Resolution No. 2003-12.
  
  
• Resolution No. 2003-14 - On motion by Mr. Frost, second by Ms. Hammel and unanimous vote, the Board adopted Resolution No. 2003-14.
  

On motion by Ms. Hammel, second by Mr. Kassees and unanimous vote, the Board meeting adjourned at 10:10 a.m.

APPROVED BY THE BOARD OF DIRECTORS OF THE LANCASTER COUNTY SOLID WASTE MANAGEMENT AUTHORITY THIS 13TH DAY OF FEBRUARY 2004

Barbara B. Hammel, Secretary