Minutes of the Board of Directors Meeting
February 16, 2002

The Board of Directors of the Lancaster County Solid Waste Management Authority met on Friday, February 16, 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, Kassees, Musser, Snoke and Wood. Absent was Varljen. Staff present were: Warner, Forster, Garner, Lausch, Norris, Olson and Dougherty. Also present were: Solicitor George T. Brubaker, Hartman Underhill & Brubaker; Jim Klecko, Ogden Martin Systems of Lancaster; Ryan Robinson, Lancaster New Era; and citizens as listed on the attached sign-in sheet.

APPROVAL OF THE MINUTES

On motion by Musser, second by Kassees and unanimous vote, the Minutes of the December 15, 2000 meeting were approved.

PUBLIC COMMENT

Chairman Ebel opened the meeting for public comment.

There was no public comment at that time.

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

• Operating Results -Tonnage and revenue for the month of January trended just about where budgeted.
  
  
• System Bus Tour - The January 30^th facilities bus tour was attended by 27 people. It is anticipated that the Authority will offer tours on a regular basis, perhaps one per quarter, with some tours being scheduled on Saturdays.
  
  
• Resolution No. 2001-1 - Mr. Warner stated that Resolution No. 2001-1 is significant, as, among other things, it approves entering into four agreements of sale with landowners and continues to extend offers to the other five landowners who are currently in litigation with the Authority. This resolution also protects another 32 properties from any negative impact from the landfill. The resolution reiterates the Authority's commitment.

Cabell Kladky - Mrs. Kladky asked how the Authority came up with the 32 landowners.

Mr. Warner - Mr. Warner replied the area begins at River Road, where it turns off of Letort Road, to where River Road splits; then from the fork straight onto Chestnut Grove Road, including properties on both sides of Chestnut Grove Road. This resolution also includes properties at the end of phase 3 where the landfill will be 50 years from now.

Mike Bare - Mr. Bare stated that at the first meeting one of the reasons for signing was to grandfather in the old setback regulations.

Mr. Warner - Mr. Warner stated that the Authority must abide by what the regulations are now and what regulations are in effect anytime in the future.

Mr. Bare - Mr. Bare asked: is it true that Board members have agreed to spend up to 20 million dollars for properties that you do not know you can even use for 15 years? You don't know if you will get an exception or a landfill expansion permit for 15 years?

Mr. Warner - Mr. Warner stated that the Authority has done extensive review of that property to make sure that property is conducive to a landfill. The Authority cannot predict what the regulations will be in the future, but it is using the best knowledge it has now to make decisions for tomorrow.

Mr. Bare - Mr. Bare asked a question of Mr. Kassees: If business does five million dollars a year, would you spend two million dollars to buy neighboring properties that you do not know if Manheim Township will allow you to use for another 15 years?

Mr. Kassees - Mr. Kassees stated there is always a degree of speculation in business.

Mr. Warner - Mr. Warner added that the Authority knows that Lancaster County is going to need another landfill in 20 years. We know that we are going to run out of landfill space. We did an exhaustive search to reaffirm that this is the best location. There is no other place in Lancaster County that, given all the factors, are as conducive to that need. There is no other spot in Lancaster County that will work as effectively and efficiently as that one. The geology is perfect, the topo is perfect, and the site has major cost and environmental advantages.

Mr. Bare - Mr. Bare asked if Mr. Warner knew of any other operation that has 20 years of landfill capacity left that is buying land for future expansion.

Mr. Warner - Mr. Warner replied, yes, and added he also knows a lot of operations that only work in crisis management mode.

Mr. Bare - Mr. Bare asked Mr. Musser why action was taken in such a non-public manner? Why was it not announced to the public in advance?

Mr. Musser - Mr. Musser responded that he felt it was done in an appropriate manner that was taken at that time.

Chairman Ebel - Mr. Ebel added that the Authority had to make a deal with major property owners before proceeding. The intention was to notify all the other landowners and it became public before the Authority had the opportunity. You would have been notified shortly thereafter.

Mr. Bare - Mr. Bare added, even after our neighbors properties were purchased?

Chairman Ebel - Mr. Ebel stated that this was the proper way to proceed and the zoning issue was a matter of public record.

Mr. Warner - Mr. Warner stated that it was Manor Township's business, not the Authority's.

Ed Kladky - Mr. Kladky congratulated Mr. Snoke on his appointment.

Mr. Kladky - Mr. Klady asked for responses to the twelve questions. Mr. Kladky also expressed he did not appreciate Mr. Bob Frankhouser's threat of a slap lawsuit.

Mr. Warner - Mr. Warner replied that Mr. Frankhouser was overly aggressive, and we pulled him back.

Mr. Warner - Mr. Warner stated regarding the twelve questions, that Mr. Kladky's questions are not questions but statements with question marks behind them. Mr. Warner also stated that Mr. Kladky had reached the point that he has accused this Board and himself of some financial benefit. Mr Warner stated he felt that is about as low as you can get.

Fred Daum - Mr. Daum said Mr. Warner has done a great job on educating the public with the facility tour and handouts. Mr. Daum's concern is with elected officials.

Also, Mr. Daum asked if the incinerator has a capacity of 1,200 tons, was that a regulated amount or a capability amount.

Mr. Forster - Mr. Forster replied that the resource recovery facility is permitted for 1,200 tons per day.

Mr. Daum - Mr. Daum asked if that limits the Authority (that we cannot take more than 1,200 tons per day)?

Mr. Forster - Mr. Forster stated, no, that it is the average rate over a one year period.

Mr. Warner - Mr. Warner added that 1,200 tons is at peak output; the 1,200 tons per day is based on to the heating value of the waste. The RRF operates 24 hours a day, seven days a week, 365 days a year. We take waste 5½ days a week, but the facility operates 7 days a week.

Mr. Warner - Mr. Warner stated that there seems to be some confusion about how much waste the organization takes from out of state. For the record, this Authority has not taken 417,000 tons of waste from out of state the last two years. It is more like 56,000 tons, and it all went to the waste-to-energy plant. All out of state waste is100% burned and creates ash that is used at the landfill for daily cover in place of dirt. This waste has no impact whatsoever on the landfill. The only reason we do it is to keep the fees to the users at a market rate and still provide a first class system.

Mr. Warner - Mr. Warner also stated, again for the record, that this Authority has no plans in the past, present or future to use rail to deliver waste to its facilities. We have never even considered bringing waste from New York City or Philadelphia or any other place like that. We would have to get waste up a 250' cliff if we used rail transportation to deliver waste to the landfill.

This Authority, knowing there would be accusations and criticism, has always tried to take the position to do what is right. We were not going to go forward just because of who owned the land next to us. We could not help who owned the land next to us. That was the land, that after a thorough study, would be a good, long-term decision and future decision makers will fulfill. What we are proposing is going forward and buying that land so that future decision makers at least have the option to use it. We feel the investment is worth it. Maybe we will say , "aren't we glad we have that land". In long-term planning you never have guarantees.

Mr. Ebel - Mr. Ebel asked the public to write down any questions they have as he read Resolution No. 2001-1 in its entirety.

On motion by Frost, second by Musser, Resolution No. 2001-1 was adopted. There was one abstention by Mr. Snoke.

John May - Mr. May stated that he understands the purpose of the resolution. His concern is with the alternatives. You say there is no viable alternatives in regards to recycling. He stated he is not sure if the Board is aware of the zero initiatives that are being discussed in California, Nova Scotia, Australia and Canada, where they have 88% recycling levels. He suggests the Board look at that very hard. He is also concerned about the contract with Ogden Martin. He asked if that contract provides that the Authority shall supply a certain amount of volume to keep the incinerator operating efficiently for the production of electricity and does it require more trash or fuel than the county can provide. Did the Authority agree with Ogden Martin to provide that quantity some how?

Mr. Warner - Mr. Warner replied that through the combination of recycling and waste-to-energy, this county reduces the waste to the landfill by 84 to 88 percent per year. This Authority does everything it can to reduce landfill consumption. We use ash for cover, recycling and waste-to-energy. Lancaster County's recycling rate is about 33.5 percent, and I think it will go up although not as quickly as before because most programs are in place. I am familiar with efforts in California and Nova Scotia; however, I would seriously question those kinds of numbers . One frustrating thing about the waste industry is everyone wants to keep score a different way.

Mr. Warner - Mr. Warner added, as far as the Ogden Martin question, the Authority has a 20 year service agreement with Ogden Martin. I think what you are referring to is a "Put or Pay" program where years ago when waste-to-energy was considered a competitor to recycling.

Cabell Kladky - Mrs. Kladky asked have you actually passed this resolution?

Chairman Ebel - Mr. Ebel replied, yes.

Cabell Kladky - Mrs. Kladky stated: I would like to commend the Board, I really would. I think in this case you did the right thing. Since the first call I got from Mr. Warner back on Election Day, I still can't believe what has happened to my neighborhood could happen in America. And I have said often that I feel when we were first made an offer and then it was taken back it caused a great deal of stress-- more stress in the neighborhood that was already in turmoil. I would really like to thank you for rethinking that and making the offer and for letting people who want to get out get out. Thank you.

Mr. Ebel - Mr. Ebel stated the comments were appreciated.

FINANCE DEPARTMENT - Olson reported on the following:

• LCSWMA Preliminary Results Actual vs. Budget - All Programs for the Month ended January 31, 2001.
  
  
• LCSWMA Accounts Receivable Report and Past Due Detail Analysis as of January 31, 2001.
  
  
• Approval of Disbursements - On motion by Kassees, second by Clark and unanimous vote, the Summary of Disbursements for December 2000 in the total amount of $3,343,659 and January 2001 in the amount of $3,738,054 were unanimously approved.
  
  
• The 2000 audit has been completed, and Trout Ebersole and Groff will present the report at the next scheduled meeting.

ADMINISTRATIVE SERVICES DEPARTMENT - Lausch reported on the following:

• Waste Stream Management - The Summary Tonnage Report - Actual Results vs. Budget for the Month Ended January 31, 2001 was reviewed. Total revenue tons received for processing and/or disposal at Authority facilities in January were 42,248 tons.
  
  
• Solid Residual Waste - A new four year Agreement was entered into with RR Donnelley & Sons Company for disposal of their ink waste, and a new three year Agreement was entered into with Kalas Manufacturing for disposal of plant trash and wire/cable production residual wastes.
  
  
• Liquid Residual Waste - The LTP received 742,913 gallons in January, the highest number of gallons received in a single month since January 1999. Revenue for the month was $39,214 which exceeds budget by $11,266.
  
  
• Recycling - The annual year-end compilation of data was completed on the program to recover CFCs from white goods delivered to our facilities. The year 2000 was the second straight year that the number of units processed and recycled increased by 23% from the previous year.
  
  
• Lease of 53 Acres of Cropland at the RRF - On motion by Wood, second by Frost and unanimous vote, the Board approved entering into a three-year lease agreement with Steve Strickland for the 53 acres of cropland next to the RRF, with the option of two additional years. Rental price will be $111.51 per acre, which is $5,910.03 per year.

OPERATIONS DEPARTMENT - Garner reported on the following:

• Administrative - Work was completed on the Facility goals for 2001. These measurable goals are used to establish benchmarks to monitor and manage performance through the year.
  
  
• Landfill - Jere Schadt, the Landfill Weighmaster, will retire on February 16. His position will be filled as soon as possible.
  
  
• Resource Recovery Facility - Site operations staff at the RRF worked six consecutive months with no accidents or injuries. This is the first time one of our facilities reached the six-month mark since we implemented the incentive program.
  
  
• Transfer Station- The Transfer Station began using tare weights for larger vehicles. About 30 vehicles are participating in the program. The transition to using tare weights went very well and has received positive response from the haulers.
  
  
• Household Hazardous Waste Facility - The 2000 Household Hazardous Waste Facility Summary was reviewed. The facility serviced 3,274 customers for a total of 3,572 households; 2,096, or 64%, being new customers. A total of 125.5 tons of material was received at the facility.

Mr. Ebel said he didn't think information on the orange battery bags is getting to the homeowner.

Mr. Garner said that information goes out through municipality newsletters; the Authority sends battery bags through the mail upon request from home owners. The Authority will look at other alternatives to get the word out.

Mike Bare - Mr. Bare asked if household batteries are recycled.

Mr. Garner stated that a portion of the batteries are recycled. The standard household battery is very hard to recycle. The batteries that cannot be recycled are put in a plastic bucket, sealed and taken to the landfill.

Fred Daum - Mr. Daum said he was unaware of the HHW facility until he took the January 30^th facility tour. He stated it was an excellent program - and it is free.

• Purchase of a New Track Type Front-End Loader and Sale of Used Caterpillar 963B Front-End Loader - On motion by Frost, second by Hammel and unanimous vote, the Board awarded the contract for the purchase of a new track type front-end loader to Cleveland Brothers Equipment Company for the bid price of $207,000. It is further recommended that the sale of the used Caterpillar 963B loader be awarded to Machinery Services, Inc. of Royersford, PA for the bid price of $132,500.
  
  
• Award Contract for Purchase of Coarse Aggregate (Stone) - On motion by Kassees, second by Wood and unanimous vote, the Board approved the award of the contract for the purchase of coarse aggregate to County Line Quarry, Inc., for the period March 1, 2001 through February 28, 2002, with the option to extend the contract into the second and third year.
  
  
• Award Contract for Tires and Tire Service - On motion by Musser, second by Frost and unanimous vote, the Board approved the award of the contract for new radial truck tires and truck tire service/flat repair to H & F Tire Service, Inc. The contract for retread trailer tires, construction equipment tires, and construction equipment tire service was awarded to Service Tire Truck Centers, Inc.
  
  
• Purchase of New Front Deck Commercial Mower - On motion by Frost, second by Hammel and unanimous vote, the Board approved the award of the contract for the purchase of a new Holland MC28 front deck mower to Lancaster Ford Tractor, Inc. for the state contract price of $18,407.46.

RRF CONTRACT ADMINISTRATION DEPARTMENT - Forster reported on the following:

• Site Operations - Electric revenues for January were $1,247,525, or $47,525 above budget, despite the occurrence of two mini-outages and several furnace tube leaks.

A total of 31,631 tons of waste was delivered to the facility in January, down 5% from last month.

• Regulatory Activities - Randy Weiss visited the site on January 8^th and again on January 18^th for routine operational inspections. His report had no operational violations.
  
  
• Other Activities - The "Resource Recovery Facility 2000 Performance and Condition Report" by R.W. Beck was reviewed. The report was very positive both for the Authority and Ogden Martin. It states that the facility is in good condition and continues to perform well. Ogden met or exceeded all of the contractual Performance Guarantees (tons processed, energy generated, etc.) for the year, and the plant's environmental performance in 2000 was better than the previous year.
  
  
• Establishment of a Fluorescent Bulb Recycling Program at the HHW Facility - On motion by Hammel, second by Clark and unanimous vote, the Board approved the establishment of a fluorescent bulb recycling program at the Authority's Household Hazardous Waste Facility. The HHW will serve as a consolidation center, accepting spent lamps from homeowners and small businesses that generate no more than 30 spent bulbs per month. Once a sufficient number of bulbs have been collected, a lamp recycler will be contacted to pick up the bulbs and transport them to their facility for further processing and recycling. This recycling service will be offered at no charge during the initial year of the program.

TECHNICAL SERVICES DEPARTMENT - Norris reported on the following:

• Capital Project Administration - ARM Group, Inc. has completed their review of bid documents for the Phase 2 Capping Project. In February, we will begin the Request for Qualifications process which will culminate in the June approval of a contract for this project.

The Landfill Gas Recovery Feasibility Study was received. The Study indicates there may be gas utilization projects which are financially beneficial for the Authority to pursue. LASA invited the Authority to a meeting to discuss with them and PP&L the possibility of utilizing landfill gas to fuel electric power generating equipment.

A meeting was held with ARM and DEP regarding the CFI property. The meeting was held to obtain preliminary DEP input into the scope of the Work Plan needed to obtain funding through the Department of Community and Economic Development for site remediation purposes.

• Radioactive Monitoring - On motion by Kassees, second by Musser and unanimous vote, the Board approved staff's recommendation to approve LCSWMA entering into an Agreement with ARM Group, Inc. for the completion of the Radioactivity Monitoring Action Plans in an amount not to exceed $10,500.

CITIZENS ADVISORY COMMITTEE

Mr. Warner reported that the CAC did not meet.

OTHER PUBLIC COMMENTS

Henry Hank - Chestnut Grove Road - Mr. Hank congratulated Kevin Snoke on his appointment to the Board of Directors. He also stated that as part of his job he goes to the landfill on a routine basis and the Authority has an excellent operation. Mr. Hank thanked Jim Warner on behalf of himself and his wife for providing him with information and answering every question he had.

Mike Bare - Mr. Bare asked about the study the Authority did on Construction/Demolition Waste. He asked what percentage of landfill volume/space is being taken up with C&D waste. He also asked if there was any other place to take drywall.

Mr. Warner - Mr. Warner stated that approximately 30% to 40% of landfill space is taken up with C&D waste. He also stated that Tim Breneisen, Recycling Program Manager will provide him with a list of places that take drywall and other items for recycling.

EXECUTIVE SESSION

The Board of Directors went into Executive Session at 9:45 A.M. to discuss the two litigation suits against the Authority.

OTHER BUSINESS

There was no further business to come before the Board.

ADJOURNMENT

The meeting adjourned at 10:30 A.M.

APPROVED BY THE BOARD OF DIRECTORS OF THE LANCASTER COUNTY SOLID WASTE MANAGEMENT AUTHORITY THIS 13^TH DAY OF APRIL, 2001.

John S. Kassees, Secretary