Minutes of the Board of Directors Meeting
February 13, 2004

The Board of Directors of the Lancaster County Solid Waste Management Authority met on Friday, February 13, 2004, 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.

INTRODUCTION OF NEW BOARD MEMBER

Mr. Musser introduced new Board member, Ed Gordon, who was appointed by the Lancaster County Commissioners for a five-year term.

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 T. Brubaker of Hartman Underhill & Brubaker; Jim Klecko, Covanta Lancaster; 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 December 12, 2003 meeting. Mr. Frost moved that the minutes be approved. Ms. Hammel seconded. Mr. Musser called a vote; the motion passed unanimously.

PUBLIC COMMENT

There was no public comment.

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

• Financials - Mr. Warner stated that the financial results for the month were positive even though bad weather curtailed deliveries of waste.



• Penn-Mar Ethanol - PME has been seeking to obtain rezoning from Conoy Township for this project. Two meetings were held by the Conoy Township Zoning Board to hear discussion on the matter, and the Conoy Township Supervisors also held a hearing on January 29th. The Conoy Township Planning Commission made a recommendation to the Supervisors to approve the zoning. One stipulation in the recommendation was to hire a consultant to help the Planning Commission finalize language that would be in the zoning ordinance. On February 12th, the Supervisors held their regular meeting and agreed with that recommendation. As a result, the rezoning of the land is delayed until a consultant can be hired to look at the language that would be included in the zoning ordinance.
  
  With regard to engineering, the Authority has engaged Covanta, who is using a subcontracted engineering firm, to look at the design of how the Authority would supply steam and water to that plant.

  Mr. Musser asked if Penn-Mar Ethanol knew when they would break ground, should the project be approved.

  Mr. Warner said they would be pushed back to late Fall or into 2005. Mr. Warner added that the matters of the Conditional Use Hearing and the Land Development Plan had yet to be addressed.

  Mary Glazier (269 Chestnut Grove Road, Conestoga) asked if the issue of a fourth burner was being addressed concurrently with the ethanol plant.

  Mr. Warner replied no, that currently the Authority's resources were earmarked for the new Transfer Station, and that permitting and financing a fourth burner would be a lengthy process, and would not happen in the near future.

• Covanta Bankruptcy - Covanta is scheduled to exit bankruptcy in March. A second plan of reorganization hearing is scheduled for March 3rd. The plan is that they would come out as a wholly owned subsidiary of Danielson Holding Company. Under this arrangement, the management will remain intact and Covanta will continue to operate under our existing Service Agreement.
  
  Mr. Warner reported on a Covanta meeting he and Mr. Forster attended February 10-11.
  
  
• Transfer Station - A Final Design Basis Report has been received from Gannett Fleming, Inc.
  
  
• Rendell Budget Proposal - Mr. Warner reported on the proposed $5/ton increase in Governor Rendell's 2004-2005 budget.
  
  Mr. Ebel asked about the tons of in-state and out-of-state waste.
  
  Mr. Warner responded it was roughly 12 million for each waste stream.
  
  Mr. Ebel said a meeting with county legislators would be appropriate.
  
  Mr. Warner said plans were already being made for such a meeting.
  
  
• Approval of New Effluent Agreement with Elizabethtown Borough - The Authority and Elizabethtown Borough have agreed to amend and restate the Agreement dated July 21, 1987, in order to (a) confirm that the sewage effluent may be used as a source of water for the RRF, (b) confirm that the sewage effluent can be used for other facilities which in the future may be associated with the operation of the RRF (such as the ethanol plant) and (c) provide for additional compensation to Elizabethtown Borough if the combined usage exceeds an average of 1,000,000 gallons per day. A discussion followed.
  
  Mr. Frost said he assumed the Authority would treat that effluent also.
  
  Mr. Warner said the Authority would have to treat the effluent. Mr. Warner reported that a cleaner technology was currently being considered.
  
  Mr. Frost asked what percentage of the Elizabethtown effluent the Authority used.
  
  Mr. Warner said the Authority used an average of six or seven hundred thousand gallons per day.
  
  Mr. Ebel noted the Agreement said the Authority could sell the additional effluent to another party.
  
  Mr. Warner agreed.
  
  Mr. Ebel suggested one minor change.
  
  Mr. Brubaker said there should be a semi-colon or a period after the word "Township" in the fourth line.

Note: Mr. May made remarks that were not recorded because they were not made from the podium.

On motion by Mr. Ebel, second by Mr. Frost and unanimous vote, the Board approved the Agreement in substantially the form as presented.

FINANCE DEPARTMENT - Ms. Olson reported on the following:

• LCSWMA Preliminary Results Actual vs. Budget - All Programs for the Month ended January 31, 2004.



• LCSWMA Accounts Receivable Report and Past Due Detail Analysis as of January 31, 2004.
  
  
• Approval of Disbursements - On motion by Mr. Houck, second by Ms. Hammel and unanimous vote, the Summary of Disbursements for December, 2003 and January, 2004 in the total amount of $8,845,551 was unanimously approved.

• Summary Tonnage Report - In January, total revenue tons were 40,666 tons and total tip fees were $2,497,030, both of which were within 1% of budget for the month. We received 28,810 tons of MSW, which is slightly ahead of budget, due to higher than expected Construction/Demolition waste deliveries. The total Residual and Special Waste deliveries were less than budgeted at 11,788 tons. The Resource Recovery Facility received 28,773 tons and the Landfill 11,825 tons.
  
  
• Residual Waste - Several Waste Services Agreements were renewed in January. Three-year agreements were completed with Kalas and NTN BCA. CNH America LLC, formerly New Holland North America, signed a new four-year agreement, and a five-year agreement was entered into with Tomkins-Lasco. Annual revenue for disposal of waste from these four generators should approximate $140,000.
  
  
• Recycling - Staff was busy meeting with municipalities on the 2003 six-month recycling/refuse program reviews. They are also meeting with the six largest MSW hauling companies to review manifesting and recyclables collection issues, as well as meeting with five recycling markets/processors to review data reporting and marketing issues. During February, staff will be gathering and summarizing data for the 2003 PaDEP Annual Recycling Report.
  
  Mr. Ebel asked the identity of the top six haulers in Lancaster County.
  
  
• Mr. Lausch responded: BFI, Good's Disposal, Lebanon Farms Disposal, Penn Waste, York Waste Disposal and Waste Management.
  
  
• Compensation/Insurance/Benefits - A Wellness and Safety Meeting on Cold Weather Safety was held at the Landfill in January and will be held at the other facilities in February.

By the beginning of March, work will be underway to overhaul the Authority's web site. A very clean, professional look will be introduced to the site, and it will be categorized under new headings, such as residents, haulers, and educators so that the visitor can easily access the information that is most important to them. The Weidenhammer firm has been selected to do the work.

The Authority partnered with Stasburg Borough in a mailing to their residents which number about 1,500. On their behalf, we redesigned and printed a brochure that explains their change to a licensed hauler program. We provided them with copies of the Authority's Overview Brochure which will also be included in the mailing.

LCSWMA is working on a teacher out-reach program that will help teachers incorporate the issues of waste management in Lancaster County in their curriculums. We will offer a few days in May and June where the teachers will attend a session that outlines the integrated system. A guided tour of our facilities will also be included, and we will supply them with pre-packaged lesson plans and educational materials.

OPERATIONS DEPARTMENT - Mr. Zorbaugh reported on the following:

• Administrative - Considerable time was spent working with Gannett Fleming on the Transfer Station redesign. Efforts have been focused on finalizing the Design Basis Report, completing all building floor plans, preparing DEP permit information, presenting a site sketch plan to Manheim Township zoning officials for comments and completion of various subsurface investigations.
  
  Work continues on the RRF tipping floor expansion. Bid Documents went out to contractors, and their proposals are due back by mid-March.
  
  
• Facility Operations - All facilities operated well during the month of January with the usual seasonal reduction of waste deliveries due to the winter weather.
  
  
• HHW Summary Comparison - A brief summary showing the amount of HHW materials and the different categories that were collected over the course of 2003 in comparison with those of previous years was presented. The amount of customers served was up; however, the amount of HHW materials collected was down over previous years. The operating costs of the facility are at the lowest since the program was established.
  
  
• Safety - There were no notable accidents to report at any Authority Facilities during January. Authority drivers negotiated some difficult road conditions the last week of the month without incident.
  
  
• Purchase of Coarse Aggregate Materials - On motion by Mr. Frost, second by Mr. Wood and unanimous vote, the Board approved the award of the contract for the purchase of coarse aggregates to the low bidder, Binkley and Ober.
  
  
• Purchase of Tires and Tire Service - On motion by Mr. Ebel, second by Mr. Rosier and unanimous vote, the Board approved the award of the contract for the purchase of new radial truck tires and tire service to H & F Tire Service and the contract for the purchase of construction equipment tires and tire service to Service Tire Truck Centers.
  
  
• Purchase of Low Ground Pressure Dozer - On motion by Mr. Houck, second by Mr. Kassees and unanimous vote, the Board approved the award of the contract for the purchase of the LGP Dozer to Plasterer Equipment Company for the contract price of $96,249.
  
  
• Purchase of 963C Track Loader - On motion by Mr. Frost, second by Mr. Ebel and unanimous vote, the Board approved the award of the contract for the purchase of a 963C Track Loader to Cleveland Brothers, Inc. for the purchase price of $222,936.
  
  A discussion was held relative to a recent Avian Flu outbreak in Lancaster County. Mr. Zorbaugh reported that the landfill will be prepared if disposal is required of the diseased chickens.
  

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

• Site Operations - Electric revenues for January were $1,021,669, or $10,669 ahead of budget, even though the boilers were run at reduced steam load during the last five days of the month in order to conserve pit inventory.
  Unit #1 and Unit #3 mini-outages were completed on time during January.
  
  There were problems with the residue handling system due to the cold weather; however, the system did work 93% of the time.
  
  The ferrous recovery system removed 607 tons of metal from the ash. It is hoped that the system will recover over 7,000 tons in 2004.
  
  
• Regulatory Activities - Randy Weiss of DEP was on site for an inspection on January 5th. He did not observe any operational deficiencies during his inspection, and was pleased with Covanta's drawdown of the pit inventory during the previous weekend to about the 8' level.
  
  The final 4th quarter ash testing results are well below the federal limits for both cadmium and lead.
  
  
• Other Activities - A meeting was held with the Lancaster County Planning Commission in hopes of obtaining a waiver for the preparation of a Land Development Plan for the expansion of the Tipping Floor at the RRF. The only concern was how the expansion would affect stormwater management at the site. As a result, ARM was contacted to prepare a response to the Commission's concern. It is hoped that the Planning Commission's waiver can be obtained before the end of February so that construction of the expansion can begin in early April..TECHNICAL SERVICES DEPARTMENT - Mr. Norris reported on the following:
  
  
• Administrative - The existing permit for the Transfer Station will expire in April. An application for renewal of the existing Transfer Station permit was submitted in October 2003. DEP has advised us that it is approved, and we expect to have it back shortly with no comment.
  
  The new Transfer Station Design permit process is proceeding with Gannett Fleming. That application will be submitted to DEP as soon as possible and will be applicable to the actual permit area of the new Transfer Station. A meeting was held with Manheim Township Department of Planning and Zoning where the Preliminary Plan Sketch was presented. A letter with comments has been received and their concerns are being addressed. LASA has also been contacted relative to the sewer connections.
  
  
• Capital Project Administration - Phase 3 Capping . The Request for Qualifications have been solicited. By the end of the month, we will be out for bid on the project and will have a recommendation for the Board at the April meeting.
  
  
• Landfill Gas Project - SCS Engineers completed their report which identified several options that could be pursued, including (a) using the landfill gas on-site ourselves to generate our own electricity; (2) utilizing the gas at the site and generating electricity that could be put on the grid; or (3) possibly partnering with Turkey Hill Dairies or LASA in their utilization of the gas or electricity. A meeting is planned with SCS Engineers to further discuss their findings and initiate conversations with the possible partners.
  
  Mr. Warner added that this project could cost over $3,000,000.
  
  
• Facility Compliance and Assurance - During January, end-of-year reports are assembled in conjunction with various permit requirements. These include the LASA Chapter 94 report and the AIMS report for the landfill gas emissions.
  
  LCSWMA/Elizabethtown Borough Agreement regarding the use of the Cornwall Open Pit Mine Pool relative to SRBC Requirements for the RRF - On motion by Mr. Frost, second by Mr. Wood and unanimous vote, the Board approved entering into an Agreement with Elizabethtown Borough regarding the use of the Cornwall Open Pit Mine Pool relative to SRBC requirements for the LCSWMA Resource Recovery Facility.

CITIZENS ADVISORY COMMITTEE

Mr. Warner reported that the CAC did not meet.

EXECUTIVE SESSION

The Board went into Executive Session at 9:10 a.m.

OTHER BUSINESS

The regular Board meeting reconvened at 9:40 a.m. There was no further business to come before the Board.

ADJOURNMENT

On motion by Mr. Frost, second by Ms. Hammel and unanimous vote, the Board meeting adjourned at 9:45 a.m.

APPROVED BY THE BOARD OF DIRECTORS OF THE LANCASTER COUNTY SOLID WASTE MANAGEMENT AUTHORITY THIS 16TH DAY OF APRIL 2004

Barbara B. Hammel, Secretary