Minutes of the Board of Directors Meeting
June 15, 2001

The Board of Directors of the Lancaster County Solid Waste Management Authority met on Friday, June 15, 2001 at 7:30 A.M. at the Authority office, 1299 Harrisburg Pike, Lancaster, PA.

ATTENDANCE

Board of Directors present were: Acting Chairman Musser, Clark, Frost, Hammel, Kassees, Varljen and Wood. Absent were Ebel and Snoke. Staff present were: Warner, Forster, Garner, Lausch, Norris, Olson and Dougherty. Also present were: Solicitor George T. Brubaker, 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

On motion by Kassees, second by Clark and unanimous vote, the Minutes of the April 13, 2001 meeting were approved.

PUBLIC COMMENT

Acting Chairman Musser opened the meeting for public comment.

Ed Kladky, 109 Chestnut Grove Road. Mr. Kladky commented on the recent election in Manor Township. He also noted that the citizens of Manor Township have lived and planned their lives by the 1986 zoning agreement. Mr. Kladky also requested that the day and time of Board meetings be changed to a more convenient one for citizens.

Alan Kreider, 141 Supervisor Road. Mr. Kreider presented a written copy on liner information to Mr. Warner. He asked what the manufacturer's guarantee is on the plastic liner.

Mr. Warner - Mr. Warner responded that he was not sure. The Authority stands by its environmental record. The landfill liner was put down according to all quality control and assurances using the best technology science provided to insure the safety of the environment.

Also, there are wells around the perimeter of the landfill, and those wells help the Authority to determine if the landfill is leaking.

Mr. Kreider - Mr. Kreider stated that he was also concerned about the landfill being located next to the Susquehanna River.

Mr. Warner - Mr. Warner said he respected Mr. Kreider's comment, but all landfills are in someone's watershed. It doesn't matter if you are next to a river or ten miles from a river, the bottom line is that you have to ensure environmental protection. You must have a sound monitoring system. That is what the Authority does.

Jim McElroy, 2445 Gamby Road. Mr. McElroy read the Authority's Mission Statement. He asked why the Authority continues to import materials from out of Lancaster County and out-of-state when the mission statement specifically says, "...materials generated by residents in Lancaster County".

Mr. Warner - Mr. Warner responded that the Authority does not import any materials directly to the landfill from out-of-county, let alone out-of-state, other than the Protective Cover Enhancement Layer material that has been taken in the past from out-of-county sources.

The Authority began using the excess capacity of the waste-to-energy plant in 1994, and it coincided precisely with a Supreme Court decision that said that Lancaster County and other counties that had systems like ours could no longer rely on waste flow control.

Mr. McElroy - Mr. McElroy said that on page 65 of the February 12, 2001 presentation at the Manor Middle School there was a question, "If there will be an increase in traffic, what is the anticipated volume?" The answer, "Based on current projections as to the future growth in Lancaster and the corresponding increase in tonnage, we anticipate that in 2021 the landfill would experience an additional one (1) vehicle per hour". How many vehicles per hour today?

Mr. Warner - Mr. Warner responded about 120 trucks per day are going to the landfill.

Mr. Garner - Mr. Garner said perhaps 130 to 140 on some days.

Mr. McElroy - Mr. McElroy asked if that would be a commercial vehicle?

Mr. Warner - Mr. Warner answered yes.

Mr. McElroy - Mr. McElroy asked why was only the Barley family contacted regarding the sale of their land; why were only 10% of the families contacted and not the other 90%?

Mr. Warner - Mr. Warner said he would be happy to answer the question and has answered the same question at least two other times at Board meetings. The Authority looked to negotiate with the one family that had 95% of the land. Rather than have simultaneous negotiations with a group of ten that might not bear fruit if the 90% landowner said no, it would have been a moot point.

Mr. McElroy - Mr. McElroy stated that when the Authority secretly deliberated with only one of the affected property owners and had not even considered the other 9 families whose lives are affected by what is being done, it is really pathetic.

Rhea Cosentino, 232 Oak Road. Ms. Cosentino asked, "In 1994, when the agreement with LASA was made to permit 85,000 gallons a day to LASA, was the Authority expecting that much leachate from the Frey Farm Landfill or was the Authority contemplating aggressively working to secure contracts from out-of-county and out-of-state liquid industrial waste haulers?"

Mr. Warner - In 1994 we had no clue about the future operation of the LTP. The decision to become a commercial operation was only made in 1998 and has no impact on the system. The revenue from the LTP is under a half million dollars, less than 1% of the total revenue of the Authority.

Mr. Norris - Mr. Norris responded that the 85,000 gallons per day average volume that was established during negotiations with LASA was a value that LCSWMA would not exceed. The plant's process capacity is permitted at 50,000 gallons per day.

Donna Bare - Mrs. Bare asked if any Board member or a member of the Citizens Advisory Board sit in any capacity or committee on the Chesapeake Bay Association or Foundation?

Mr. Warner - Mr. Warner responded that he was not aware of any.

Mrs. Bare - Mrs. Bare repeated, "Not that you are aware of" and stated she believes Mr. Goodhart is.

Mr. Warner - Mr. Warner responded that he did not know. Mr. Goodhart might be a member of the Elk's Club also. He did not know.

Mrs. Bare - Mrs. Bare stated that the Chesapeake Bay Foundation is a little more prudent than the Elk's Club.

Mrs. Bare - Mrs. Bare also asked if Mr. Snoke accepted his appointment in December and why Mr. Snoke was not at the meeting.

Mr. Warner - Mr. Warner responded that Mr. Snoke had another commitment and he could not attend today's meeting.

Mrs. Bare - Mrs. Bare asked if there were new appointments made to the Board, stating she did not recognize the gentlemen in the corner.

Mr. Warner - Mr. Warner responded that the gentlemen was Mr. Varljen.

John May, 100 Fox Road. Mr. May asked, "How many different manufacturers are there of liners?"

Mr. Warner - Mr. Warner responded that as far as the liners used in the Frey Farm Landfill, there is only one.

Mr. May - Mr. May asked the name of the manufacturer.

Mr. Warner - Mr. Warner replied the manufacturer is Gundle, based in Houston.

Mr. May - Mr. May stated that Mr. Warner specifically said at the April meeting that he was going to check on the liner guarantees. Mr. May added he was sure there was a guarantee.

Mr. May - Mr. May asked if the Board had ever had a special meeting other than the regular monthly meetings to discuss policy and the Authority mission statement within the last year?

Mr. Warner - Mr. Warner responded, "Not that he knew of."

Mr. May - Mr. May added that it might be a good idea to have one.

Mary Glazier - Mrs. Glazier requested the Board put on their agenda a discussion of the time and schedule of the Board of Directors meetings. She asked how often the Board meets.

Mr. Warner - Mr. Warner responded the board meets eight or nine times a year.

Mrs. Glazier - Mrs. Glazier stated that there should be more opportunities for public participation at a more reasonable time and more frequently scheduled meetings.

Mr. Musser - Mr. Musser stated that the comment will be taken under consideration.

Mrs. Glazier - Mrs. Glazier asked if the employees of LCSWMA have access to the landfill after hours.

Mr. Warner - Mr. Warner said, "Yes, there are times when people go into the landfill during non- operating hours. This could be for lots of reasons. It could be to check on the operation of the LTP. The Authority also has a Hunting Policy whereby employees are allowed to go on the property during non-operating hours."

Mrs. Glazier - Mrs. Glazier asked how many employees have keys to the landfill.

Mr. Warner - Mr. Warner responded, "There are 14 landfill employees and all managers have keys to the Authority facilities. Each employee has a key to the facility where they work and that is how the business is run. Employees are not supposed to share the keys unless they talk to a Manager about it."

Mrs. Glazier - Mrs. Glazier added that this issue is of concern to her, knowing employees are bringing material into the landfill after hours.

Mr. Warner - Mr. Warner noted that those employees have to work at the landfill on a daily basis. They are more concerned about what goes into the landfill than the people who are throwing stuff out in this county.

Pat Lemay - 78 Sun Lane. Ms. Lemay asked, "When a liner is installed are you aware of any leaks or tears?"

Mr. Warner - Mr. Warner said that he would like to take a group of interested people out to the landfill to witness a liner installation to see what the quality control and assurances are during a liner installation. It is literally inspected with inspectors watching inspectors.

Ms. Lemay - Ms. Lemay asked, "Are there any leaks when they are installed?"

Mr. Warner - Mr. Warner answered no.

Ms. Lemay - Ms. Lemay said that Mr. Warner was not correct because she has looked at documents that show many fabric leaks that have been repaired, so when a liner is first put down it is then repaired.

Mr. Warner - Mr. Warner responded, "Yes that's true. But there is no waste on the liner at that point."

Ms. Lemay - Ms. Lemay stated, "They are putting in a liner that leaks and tears and is then repaired."

Mr. Warner - Mr. Warner stated that is not a correct statement.

Ms. Lemay - Ms. Lemay said, "It is in the DEP records."

Mr. Musser - Mr. Musser added that when you get a new car you expect it to be perfect, but when it gets to the garage they always have someone go over it and there are always things that are being done to that car.

Ms. Lemay - Ms. Lemay stated that the liner is compromised from the beginning. She stated that what the best science and technology can give us is not good enough.

Mr. Warner - Mr. Warner asked Ms. Lemay if she had a better suggestion?

Ms. Lemay - Ms. Lemay told Mr. Warner that is his job, not her job.

Rhea Cosentino - Ms. Cosentino said at the last meeting it was mentioned that the Authority would be putting together a system of recovering lead and copper from ash that is generated at the Resource Recovery Facility. She also stated that there must have been some kind of quantitative analysis of the ash to make sure it would be of value. She said she received information from the Authority on what makes up ash. She requested the quantitative analysis of the ash.

Mr. Warner - Mr. Warner said she could see the records on ash testing.

Mr. Warner - Mr. Warner said he wanted to correct something. Not all of the Authority's recycling initiatives make money. Recycling programs, including the new computer recycling program, which is going to be a definite financial loser, have environmental benefits.

Mr. May - Mr. May asked who is the liability insurance carrier for the landfill?

Mr. Lausch - Mr. Lausch responded, AIG.

Mr. May - Mr May asked if they were aware of the after hours of the transportation in and out of that facility?

Mr. Warner - Mr. Warner responded they are not.

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

• Operating Results - Financial results for May were strong with a surplus of $135,780.
  
  
• Pilot Computer Recycling Program - Warner reviewed the proposed Pilot Computer Recycling Program. Pursuant to the Citizens Advisory Committee recommendation, staff solicited pricing for marketing/processing of computer scrap. Competitive prices were received from Waste Management, Inc and Envirocycle. LCSWMA anticipates the average cost will be between $0.13 and $0.14 per pound to transport and recycle computer components through Waste Management who will provide a trailer, packaging materials, and convenient delivery to Recycle America in downtown Lancaster. On motion by Frost, second by Hammel and unanimous vote, the Board approved the following recommendation:

To manage computers in an environmentally prudent manner; provide additional recycling opportunities to residents; recover valuable metals, glass and plastics; take the opportunity to reduce the volume of waste containing recyclable metals going to the RRF and Landfill; it is further recommended that LCSWMA:

1. initiate a Pilot Computer Recycling Program for an initial twelve month period beginning July 9, 2001;
2. provide the collection as an extension of the Household Hazardous Waste Program;
3. accept computer monitors, CPU's laptops, printers and other peripheral equipment at no charge from Lancaster County residential units;
4. accept computer equipment for a nominal fee from small Lancaster County businesses (initially anticipated to be $10.00 for each monitor and $5.00 for a CPU, laptop, printer and other peripherals combination with a limit of five monitors and five CPU, laptop, printer and other peripheral combinations per delivery);
5. enter into an agreement with Waste Management Inc. to accept for recycling computer monitors, CPU's, laptops, printers and other peripherals; and
6. allocate $125,000 to cover program costs for the first year.

• Becoming a Founding Member of the SWANA Applied Research Foundation - The Solid Waste Association of North America (SWANA) has recently established the SWANA Applied Research Foundation. The Authority has been asked to become a founding member of this Foundation. Membership fees are calculated at $0.01 per system ton. The Annual Fee would be approximately $5,900. The purpose of the Foundation would be to collectively fund organized applied research in various areas of solid waste management to advance knowledge and sound science in our discipline.

On motion by Kassees, second by Varljen and unanimous vote, the Board approved the Authority becoming a founding member of the SWANA Applied Research Foundation and directs the Executive Director to take all appropriate actions to implement this membership.

• Disposition of Recently Acquired Residential Properties in Creswell - The Authority engaged MPJ Construction to inspect the Shopf, Bitner and Kaylor properties and provide an expert opinion on the general condition of each structure, as well as cost estimates for the improvement and/or renovation to make each property presentable for renting. The summary results and recommendations are as follows:

Shopf House - Cost is estimated at $8,100. Suggested disposition is to rent.

Bitner House - Cost in excess of $30,000. Suggested disposition is to defer the final decision until additional evaluation can be made.

Kaylor House and Workshop - Estimated cost of repairs is $1,800. Suggested disposition is to rent.

On motion by Clark, second by Frost and unanimous vote, the Board approved the hiring of MPJ Construction to make improvements as directed by staff at the Shopf and Kaylor properties to prepare them for future renting. Staff is also authorized to make further examination of the Bitner property due to the extremely poor structural condition of the property.

FINANCE DEPARTMENT - Olson reported on the following:

• LCSWMA Preliminary Results Actual vs. Budget - All Programs for the Month ended May 31, 2001.
  
  
• LCSWMA Accounts Receivable Report and Past Due Detail Analysis as of May 31, 2001.
  
  
• Approval of Disbursements - On motion by Wood, second by Varljen and unanimous vote, the Summary of Disbursements for April 2001 in the total amount of $3,776,256 and May 2001 in the amount of $3,435,562 were unanimously approved.

ADMINISTRATIVE SERVICES DEPARTMENT - Lausch reported on the following:

• Waste Stream Management - The Summary Tonnage Report - Actual Results vs. Budget for the Month Ended May 31, 2001 was reviewed. Total revenue tons received for processing and/or disposal at Authority facilities in May were 59,479 tons.
  
  

• Solid Residual Waste - A three year Waste Services Agreement was entered into with Amerimax Home Products which manufactures aluminum and vinyl building products. The Agreement with Wilton Armetale in Mount Joy was renewed for three years.
  
  
• Liquid Residual Waste - The LTP received 675,183 gallons of Liquid Residual Waste in May. Revenue for the month was $37,612, which was on budget.
  
  
• Recycling - The Waste Tire Processing and Recycling Agreement with A&R Tire Sales & Recycling, Inc. to market scrap tires delivered to our facilities for recycling was extended for one year. The marketing arrangement for small RRF ferrous scrap was renewed for another year with North Star Steel under the same pricing using a market scale index.
  
  
• Purchase of 30-Gallon Degradable Kraft Bags - Bids were requested for the purchase of 114,000 thirty-gallon biodegradable kraft bags. The low bid was submitted by Dano Enterprises. On motion by Kassees, second by Hammel and unanimous vote, the Board approved entering into a contract with Dano Enterprises for the purchase of 114,000, thirty-gallon biodegradable kraft bags at a unit cost of $0.2570 for a total bid price of $29,298. The price includes delivery to the Transfer Station in September 2001.

OPERATIONS DEPARTMENT - Garner reported on the following:

• Administrative - Two LCSWMA employees participated in the Make-A-Wish Foundation's Truck Parade. Our drivers raised almost $1,200 in pledges for the Foundation.
  
  
• "Operation Clean Sweep" - In May, DEP held "Operation Clean Sweep". The operation involved inspecting vehicles at every landfill and resource recovery facility in the state. Less than 5% of the vehicles using our facilities were cited by the inspectors, which is well below the reported statewide average of 14%. The majority of the citations issued at our sites were for improper signs, holes in tarps, and missing or undercharged fire extinguishers.

During the inspections, 5 out of 232 (or 2.1%) of the LCSWMA vehicles that delivered waste were cited. All citations were for leaking loads, each of which occurred after a relatively large rain event and after waiting in line on a sloped section of the access road. Staff is meeting with trailer manufacturers to determine if we can further reduce the small amount of leakage that is occasionally experienced.

• Purchase of a Pickup Truck for Use at the Landfill - On motion by Hammel, second by Varljen and unanimous vote, the Board awarded the contract for the purchase of a new Ford F-350 Pickup Truck from Phillips Ford for the bid price of $25,013.
  
  
• Purchase of a Rubber-Tired Loader/Backhoe for Use at the Landfill - On motion by Frost, second by Wood and unanimous vote, the Board approved the purchase of a Caterpillar 416D backhoe from Cleveland Brothers Equipment Company for the State Contract price of $54,500.

RRF CONTRACT ADMINISTRATION DEPARTMENT - Forster reported on the following:

• Site Operations - Electric revenues for May were $1,075,88, or $141,882 ahead of budget, due to better than anticipated electric rates, and to Covanta's running the units at 8% above design all month. There was one incident of note. Shortly after 8:00 p.m. on May 3^rd, the turbine tripped due to two electrical surges in the utility's power grid. All three units subsequently tripped and came off-line. Units #1 and #2 recovered quickly and were back in service in 10 hours; however Unit #3 did not come back on line until 11:18 a.m. on the following day. The cause of the surges was determined to be from a utility-side ground fault.

A total of 33,021 tons of waste was delivered to the facility in May.

• Regulatory Activities - Randy Weiss visited the site on May 15^th for a routine inspection. His report had no operational violations.

Semi-annual stack testing was conducted at the facility from May 21 - 31 by a company called Testar. Final results will be reported once they become available.

Other Activities - Preparations began for an Open House to commemorate the 10-year anniversary of the RRF. The Open House will be held on June 30^th from 10:00 a.m. until 2:00 p.m. and will highlight the accomplishments the plant has achieved since the start of operations in 1991.

TECHNICAL SERVICES DEPARTMENT - Norris reported on the following:

• Facilities Compliance and Assurance - The renewed LASA Industrial Waste Discharge Permit was received. This five (5) year permit is required for the FFLTP effluent received by LASA. Due to new federal regulations, the permit also includes the requirement that we monitor for certain parameters associated with the Centralized Waste Treatment Standards (CWTS) until December 22, 2003.

Additional information was sent to SRBC regarding the modification of consumptive use compliance method.

Additional information was sent to DEP regarding a minor permit modification relative to soil cover materials.

• Capital Project Administration - DEP has provided initial comments regarding the CFI Property Work Plan. Their comments have been incorporated into a revised submittal which was presented to DEP in May. We await DEP's final approval.
  
  
• Frey Farm Landfill; Phase 2 Capping; Construction Agreement - Bids were received from eight firms who had been pre-qualified by LCSWMA on June 5, 2001. The Phase 2 Capping Project involves placement of approximately twelve (12) acres of various geosynthetics, including the 40 mil polyethylene liner and two (2) feet of final soil cover in addition to the installation of three (3) landfill gas collection wells.

On motion by Wood, second by Hammel and unanimous vote, the Board accepted the low bid of Grace Industries Inc., and approved LCSWMA entering into an Agreement with Grace Industries, Inc. for the Phase 2 Capping Project in the amount of $1,633,500 which will be paid from the Capital Budget.

EXECUTIVE SESSION

The Board of Directors went into Executive Session at 9:25 A.M. to discuss the ongoing litigation.

OTHER BUSINESS

There was no further business to come before the Board.

ADJOURNMENT

The meeting adjourned at 10:25 A.M.

APPROVED BY THE BOARD OF DIRECTORS OF THE LANCASTER COUNTY SOLID WASTE MANAGEMENT AUTHORITY THIS 17^TH DAY OF AUGUST, 2001.

John S. Kassees, Secretary