Minutes of the Board of Directors Meeting
June 11, 2004

The Board of Directors of the Lancaster County Solid Waste Management Authority met on Friday, June 11, 2004 at 7:30 a.m., at the Authority office, 1299 Harrisburg Pike, Lancaster, PA.

ATTENDANCE

Board of Directors present were: Chairman Musser, Frost, Gordon, Hammel, Houck, Kassees, Rosier and Wood. Absent was Ebel. Staff present were: Warner, Buller, Forster, Lausch, Norris, Olson, Zorbaugh and Dougherty. Also present were: Solicitor George Brubaker of Hartman Underhill & Brubaker; Jim Klecko, Covanta Energy; Greg Scott and Brent Stebbins of Reese Lower Patrick and Scott; 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 April 16, 2004 meeting. Mr. Frost 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.

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

• Financials - Mr. Warner stated that the financial results for the month of May were very good due to better than expected waste flows and lower than budgeted expenses.

• Legislation - Mr. Warner reported that on May 11 th , he provided testimony before the Joint Legislative Committee on Air and Water on behalf of SWANA during an Environmental Infrastructure Legislative Day. The testimony centered on opposition to the proposed Growing Greener II $5/ton tipping fee increase and to the current exclusion of waste-to-energy in proposed legislation establishing Renewable Portfolio Standards in Pennsylvania. Mr. Warner gave an update to the Board on these two issues.

Mary Glazier (269 Chestnut Grove Road) asked how the proposed fee would affect Authority operations.

Mr. Warner replied that it would not affect the operations.

Ms. Glazier asked if the Authority would lose customers.

Mr. Warner said it wasn't likely because the fee would be state-wide.

Ms. Glazier asked about the fee and how it would impact residual waste at the Resource Recovery Facility.

Mr. Warner said the Authority would have to sit down as a business and discuss it.

Ms. Glazier asked about residual waste customers who would not renew their contract.

Mr. Warner said that would be their decision.

Ms. Glazier asked if there would be a huge drop in the waste stream, jeopardizing the Authority's financial position.

Mr. Warner said no, that would not be the case.

• Penn-Mar Ethanol - The Authority is currently working with Solicitor Brubaker on a very preliminary (rough draft) Cooperation Agreement. PME has received approval from the SRBC to withdraw water from the Susquehanna River for water needed for Plant operation. The decision does not change river flows since the effluent flows from the Elizabethtown wastewater treatment plant will not be used by PME but will be discharged into the River.

• Transfer Station - Mr. Warner noted that significant progress has been made with Gannett Fleming doing the engineering work and Reese Lower Patrick and Scott doing the architectural design .

• Healthcare - Mr. Warner noted that he was very pleased with the healthcare insurance for this year.

Mr. Gordon asked Mr. Warner what the increase was in the budget.

Mr. Warner replied 15 percent.

• Approval to Sell REC's to FirstEnergy - Mr. Warner explained the sale of Renewable Energy Credits.

Mr. Rosier said the agreement was for the first four month period of 2004. He asked if this kind of agreement would continue in the future on the same basis or could it change.

Mr. Warner said it could change if something was changed either legislatively or by decree.

After discussion and on motion by Ms. Hammel , second by Mr. Rosier and unanimous vote, the Board authorized the Executive Director to execute the Transaction Confirmation Letter with FirstEnergy and to negotiate and execute future transactions pertaining to the sale of REC's produced by the Authority's Resource Recovery Facility.

• Wallick Real Estate - In April, it was recommended that the former Wallick (99 Chestnut Grove Road) home be demolished. Mike Bare has expressed an interest in purchasing the property and has made an offer. The home was appraised a few years ago at $80,500. Mr. Warner suggested that the fair way to proceed would be to make it available to anyone who may be interested and to sell it for the highest price. Mr. Warner recommended that the Authority engage a Realtor to sell the property.

Mr. Kassees suggested the matter be tabled until the next Board meeting.

Mr. Warner recommended that it be addressed at the current meeting.

Mr. Houck asked about remodeling and repairing the structure.

Mr. Warner said that the Authority would paint the shutters and the door.

Mr. Frost asked about the condition of the house.

Mr. Zorbaugh said that it was in very rough condition.

Mr. Rosier asked about the disadvantage of not putting it on the market.

Mr. Warner said the Authority could either tear it down or take the proposal.

Mr. Houck said the Authority should publicly offer it.

Mr. Houck moved to direct the Executive Director put the property on the market.

Mr. Frost seconded the motion.

Rhea Cosentino (232 Oak Road) commented on a one mile buffer around landfills for the protection of residents and of the entities that run them. She also remarked on the sense of neighborhood that keeping the house viable would only enhance.

Mr. Warner agreed that keeping the house would help the sense of neighborhood.

Mr. Musser called for the vote. The motion passed unanimously.

• SWANA Keystone Chapter Road-e-o Recognition - The Chapter Road-e-o competition was held in May. Mr. Zorbaugh introduced Bob Barton, Ron Robbins and Joe Frymyer. Bob competed in the transfer trailer category and took second place. Ron Robbins competed in the roll-off truck competition and took first place. He also was second place in the overall high score of all truck categories. Joe Frymyer was the first place finisher in the transfer trailer category.

• Transfer Station Design Presentation - Mr. Warner introduced Greg Scott and Brent Stebbins of Reese Lower Patrick and Scott, who provided a PowerPoint ® tour presentation of the architectural design of the buildings .

FINANCE DEPARTMENT - Ms. Olson reported on the following:

• LCSWMA Preliminary Results Actual vs. Budget - All Programs for the Month ended April 30, 2004 and May 31, 2004.

• LCSWMA Accounts Receivable Report and Past Due Detail Analysis as of May 31, 2004.

• Approval of Disbursements - On motion by Mr. Frost , second by Mr. Gordon and unanimous vote, the Summary of Disbursements for April 2004 and May 2004 in the total amount of $8,344,974 was unanimously approved.

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

• Summary Tonnage Report - In May, total revenue tons were 50,740, which is up 5.6% from budget. Tipping fees were also up 3% at $3,016,284. The Resource Recovery Facility received 29,888 tons and the Landfill received 20,667 tons. Year-to-date deliveries are now 230,483 tons, or 2% ahead of budget.

• Residual Waste - Three-year Waste Agreements were signed with Miller Building Systems, Amerimax Home Products and the Wilton Company. Revenue from these accounts should be approximately $35,000 per year.

• Curbside Recycling Containers - On motion by Ms. Hammel , second by Mr. Kassees and unanimous vote, the Board approved the purchase of 10,000 22-gallon curbside recycling containers from A-1 Products at a unit cost of $3.76 for a total price of $37,600 through the state cooperative purchasing contract.

• Biodegradable Kraft Bags - On motion by Mr. Gordon , second by Ms. Hammel , and unanimous vote, the Board approved entering into a contract with Dano Enterprises, Inc. for the purchase of 280,000 thirty-gallon biodegradable kraft bags at a unit cost of $0.234 for a total bid price of $65,520.

• Employee Healthcare Plan - On motion by Mr. Kassees , second by Mr. Frost and unanimous vote, the Board approved, effective July 1, 2004, HealthAmerica POS Plan as the medical plan for the LCSWMA Employee Healthcare Plan; that an additional $250 per employee per plan year (for a total $1,000 per plan year) be available in an Authority self-funded and administered Dental/Vision/Deductible Plan (formerly the Dental/Vision Plan); and that a Health Care Flexible Spending Account and Dependent Care Flexible Spending Account be established through Wachovia for eligible employee expenses. Staff was authorized to enter into necessary agreements and take all appropriate action to have the HealthAmerica POS Plan, Dental/Vision/Deductible Plan, and Flexible Spending Accounts in place July 1, 2004.

COMMUNICATIONS PROGRAM - Ms. Buller reported on the following:

• The PaDEP pilot training program that was hosted by LCSWMA at the Frey Farm Landfill on May 4 went extremely well and received favorable feedback from PaDEP .

• The LCSWMA website is making progress and is extremely easy to navigate. There is now space devoted to tour information, a homeowner's rate sheet, and an interactive recycling map.

• The Annual Report is on schedule to be mailed by the end of June.

• Sarah Myers of Marietta was the winner of the E-cycling/Earth Week raffle. She was the winner of a digital camera supplied by Panasonic.

• A meeting was held with the Lancaster County Historical Society to discuss the Authority's possible involvement in an exhibit planned for Spring 2006 entitled, “Along the Susquehanna”, which will explore the Lancaster-York community historical involvement with the river. It is a collaborative effort and the Historical Society is in the process of getting community interest and support.

Ms. Hammel asked for more details about the exhibit.

Ms. Buller responded that the exhibit would be at the Lancaster and York County Historical Society Offices and would explore how the river has affected commerce, trade, etc.

Mr. Warner added that the Historical Society was seeking funding, and that the Board might consider that issue in more detail at their next meeting, when more information would be available.

Mr. Kassees and Ms. Hammel expressed support for the exhibit.

OPERATIONS DEPARTMENT - Mr. Zorbaugh reported on the following:

• Administrative - Construction is underway on the RRF tipping floor expansion and work is on schedule.

Progress has been made on the Transfer Station Redesign working with Gannett Fleming and Manheim Township on Land Development Plans, Traffic Studies, Geo-Technical Investigations and actual construction phase sequencing.

• Facility Operations - All facilities operated well during the month of May and have seen increases in both tonnage and customer traffic

.

The shredder purchased by the Authority has been in use at Manheim Township (16 hours) and Lancaster Township (12 hours).

Recommendations have been implemented as a result of Richards Energy's Energy Audit, including replacing old fluorescent bulbs and ballasts with more energy efficient devices and updating thermostats. These changes will reduce annual electric consumption by $4,000.

The HHW Facility had CycleChem provide a clean-out of bulk drums and lab-packed materials totaling 13.5 tons, which included oil-based paints, pesticides, insecticides and other flammable liquids.

• Safety - Authority site employees accomplished another milestone in the Safety Incentive Program by reaching 200 consecutive workdays with no loss-time accidents.

A representative of Guard Insurance, the Authority's Workers' Compensation insurance carrier, was at the Safety Committee Meeting held in May. He recommended the Authority take advantage of some safety training that they can provide at no cost.

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

• Site Operations - Electric revenues for May were $1,088,151, which is $48,151 over budget, since boiler availability for the month was approximately 4% higher than expected.

Unit #1 incurred some unscheduled downtime due to a minor tube leak during the month. The unit ran 95% of the time.

The ferrous recovery system removed 581 tons of metal from the ash for recycling.

• Regulatory Activities - Randy Weiss of DEP was on site for an inspection in May. He was pleased with what he saw.

Textar, Inc. conducted stack testing in May. Preliminary particulate results are favorable and well below permissible levels.

Covanta reported that during the month of May there were no air emission exceedances.

• Service Agreement Modification 2004-1 - Tipping Floor Expansion Project - On motion by Mr. Kassees, second by Mr. Gordon and unanimous vote, the Board approved Modification 2004-1 so that the project can proceed to completion, and that the revisions to the Service Agreement can be made.

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

• Capital Projects

Transfer Station Design Work continues with Gannett Fleming. The Permit Application for the new Transfer Station was submitted to PaDEP in early May. The Local Municipal Involvement Process (LIMP) meeting has been scheduled for July 13 th . This meeting is required of any applicant who has submitted a major permit modification in the municipality in which that project is located. PaDEP will present the information to the municipality as to how the permit process works. Also in May, the LASA application regarding the wastewater connections into LASA's sewer system was submitted.

Phase 3 Capping work has begun. Weston Solutions has mobilized on site and the first construction meeting has been held.

CFI Project - In June work will begin on the installation of the groundwater remediation system.

• Facilities Compliance and Assurance - The facilities' Annual Operating Reports have been submitted to the Department. The Act 220 registrations for the RRF and Landfill were also submitted in May.

The NPDES renewal application for the FFLF stormwater discharge has been received. The permit expires in February 2005 so the application is due to PaDEP by August.

CITIZENS ADVISORY COMMITTEE

Mr. Warner reported that the CAC did not meet. The next meeting is scheduled for Wednesday, August 11, 2004, which will include a tour of the Resource Recovery Facility and the Frey Farm Landfill.

OTHER BUSINESS

Mr. Rosier commented that on June 3 rd he attended his second SWANA Chapter meeting. Mr. Warner will be serving as President for a two-year term starting in September 2004.

ADJOURNMENT

There being no further business to come before the Board, the Board meeting adjourned at 9:35 a.m.

Barbara B. Hammel, Secretary