Minutes of the Board of Directors Meeting
June 14, 2002

The Board of Directors of the Lancaster County Solid Waste Management Authority met on Friday, June 14, 2002 at 8:30 A.M. at the Highville Fire Company, River Road, Manor Township.

ATTENDANCE

Board of Directors present were: Chairman Ebel, Frost, Hammel, Musser, Snoke and Wood. Absent were: Houck, Kassees, and Rosier. Staff present were: Warner, Buller, Forster, Lausch, Norris, Olson, Zorbaugh and Dougherty. Also present were: Solicitor George T. Brubaker of Hartman Underhill & Brubaker; Joseph Wright, Columbia Borough Councilman; Ad Crable, Lancaster New Era; and citizens as listed on the attached sign-in sheet.

APPROVAL OF THE MINUTES

Mr. Ebel asked if there were any additions or corrections to the minutes of the April 12, 2002 meeting. Mr. Frost moved that the minutes be approved as printed. Mr. Snoke seconded. Mr. Ebel called a vote; the motion passed unanimously.

PUBLIC COMMENT

Mary Glazier (269 Chestnut Grove Road) expressed her wish to change the times of the meetings. She said that some public documents she had requested had not yet been received and asked if the information request procedure could be streamlined.

Mr. Ebel and Mr. Warner said that an updated Public Information Policy was on the day's agenda.

Mr. Warner reported that the time of the meeting was to allow enough time for the Board to be transported from the Authority's offices to Manor Township.

Rhea Cosentino (232 Oak Road) asked about the new Recycling Coordinator's responsibilities.

Mr. Warner said that a job description would be forwarded.

Mr. Lausch added that the new Recycling Coordinator would be augmenting the program in terms of municipal assistance and public education.

John May (100 Red Fox Road) remarked that he remained interested in the line item in the budget devoted to LESCO. He asked that more financial information on LESCO be provided to him.

Mr. Warner explained that, as a vendor of the Authority, the Authority doesn't have a right to LESCO's financial statements, nor does it to any other of its vendors. He stated that the relationship between LESCO and the Authority is a public one.

Leslie Osborne (109 Oak Road) asked how LESCO came to be created.

Mr. Warner explained that the Authority's agreement with the County allows the Authority to make agreements with third parties to bring in additional waste which is done to assure the financial integrity of the system.

Mr. Ebel further elaborated that the Carbone decision mandated the treatment of waste as interstate commerce.

Mr. May asked Mr. Brubaker if he could add any information.

Mr. Brubaker added that as a government entity, the Authority did not want to solicit waste. LESCO was created as a private sector company, to provide a service. He added that the private sector is sensitive to the fact that municipalities don't pay taxes, and should not compete with them, and that is why LESCO was created and operates independently from the Authority.

Ms. Glazier asked why LESCO was referred to as "our" marketing firm in some documents.

Mr. Warner explained that the reference is used in the context of LESCO being contracted by the Authority to perform a certain service.

Ms. Glazier asked if the relationship to LESCO was no closer than to that of other businesses.

Mr. Warner explained that it was a typical vendor-client relationship, with the client having a large interest in how the vendor operates. The agreement between the Authority and LESCO states that the Authority gets the right of first refusal for a waste stream; that way the Authority does not get ‘played' against other waste-to-energy operators. Mr. Warner added that LESCO's creation was intended to fulfill the capacity and financial needs of the Authority, noting that LESCO has chosen to keep their efforts focused on the Authority, and not to diversify. Mr. Warner further noted that had the Authority decided to bring in garbage, instead of residual waste, LESCO would not be necessary from a management standpoint. Garbage does not require the environmental review, permits etc., that currently goes into the waste being provided by LESCO.

Ms. Osborne asked about Three Mile Island plant trash being processed at the incinerator.

Mr. Forster explained that the TMI plant trash is primarily wood waste.

Ms. Osborne expressed her belief that the Authority is paid to dispose of residual waste because it is problematic in some way, and that the Authority shouldn't take industrial waste.

Mr. Warner explained that the Authority is paid because some companies prefer the service of having their waste incinerated.

Ms. Osborne asked about payroll costs to LESCO.

Mr. Warner explained that it was for professional services; for a technical review for a customer of the Authority, etc.

Ms. Olson further explained that it is called ‘technical management', under the line item marketing.

Ms. Osborne noted that she had asked the Township Supervisors to request a public meeting with LESCO. She then asked about how billing works, and specifically, in regards to Envirite.

Ms. Olson explained that Envirite is combined with other transactions on a monthly statement to the customer.

Mr. Warner further explained that siphoning out the information on Envirite would take many hours of staff time, at a cost of hundreds of dollars, but could be done if requested.

Ms. Osborne said she would have another agency get the information.

at LeMay asked about Mr. Brubaker's presence at the meeting.

Mr. Brubaker responded that he had been at every meeting for the last 15 years.

Ms. Cosentino asked about Mr. Warner's performance review.

Mr. Ebel responded that the Board has given Mr. Warner a very favorable performance review.

Ms. Cosentino asked about the post-closure bond for Creswell, in light of the Creswell Re-use project.

Mr. Norris explained that the post closure bond remains, because Creswell is considered to be an inactive facility. A new bond submittal would occur once the proper permits are in place for a Creswell Re-use Landfill.

Ms. Cosentino asked if the Authority was responsible for the Landfill after 30 years.

Mr. Warner responded that the years for which responsibility for a Landfill is currently under review by EPA.

Mr. Norris further noted that the limits currently set at 30 years, simply provides a ‘marker', a place from which calculations can be made in regards to bonds, etc.

Mr. Warner added that the benefit of a public authority, instead of a private company, is that it is more vested in the community than a private sector enterprise would be. He gave, as an example, that the Authority will have a landfill and a presence in Manor Township for approximately the next 80 years. He noted that private landfills are also more vulnerable to market forces, and when they go defunct, the municipality is left to bear the burden of liability.

Ms. Cosentino asked about the next progress report from ARM.

Mr. Norris replied that a preliminary report might be ready by the end of the year.

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

• Consent Order Administration - The Authority is actively administering all aspects of the Consent Order involving well testing, drinking water, real estate appraisals/purchases, etc.
  
  
• Resolution No. 2002-5 - Mr. Brubaker asked the Board to adopt a form resolution required for the purchase of the Rosenberry property. This resolution would affect the settlement by deed in lieu of condemnation to avoid transfer taxes. Mr. Ebel read Resolution No. 2002-5 for the record. On motion by Mr. Ebel, second by Mr. Snoke and unanimous vote, the Board adopted Resolution No. 2002-5.
  
  
• Columbia Truck Bypass - The Authority has received a request from the Borough of Columbia for LCSWMA to partially fund this project; meetings have been held over the past nine months.
  
  Joseph M. Wright, Sr. (Columbia Borough Councilman) gave an explanation of the financial arrangement and prospective contributors.
  Ms. Hammel commented that she preferred to commit only if the others committed, and that more of a review be made of the financial arrangement.

  Mr. Snoke noted that it shouldn't be "the Solid Waste By-pass".

  Mr. Frost moved to approve a contribution in an initial amount of $100,000 towards the Columbia Borough Truck Bypass Project and pledge funding a maximum of an additional $400,000 over the four year period beginning in 2003 as others contribute funding or in-kind service (in lieu of funding) towards the project. The matching funds will be dispersed at a ratio of 1:3. Mr. Musser seconded. One dissenting vote was cast by Ms. Hammel.

• Public Information Policy - The Public Information Policy was discussed, including the following comments:
  
  Ms. Hammel requested that public comment be restricted to items on the agenda.
  Mr. Brubaker noted that public comment could not be limited in that way.

  Ms. Cosentino noted that there was no reference to the "Right-to-Know" law in the new policy, and that she would like to see such a reference.

  Mr. Warner noted that this was an administrative document, and one that does not preclude the law.

  Ms. Cosentino commented on the time frame for responding to a request for information, and that it wasn't specific enough. She also requested that payment not be made for documents produced in error, and that a fee structure be applied for non-profits, the first half-hour of staff time be waived, etc.

  Note: Mr. May made comments that were inaudible on the tape.

  Note: Mrs. May commented on cameras and recording devices. The dialogue was inaudible on the tape.

  Penn Glazier commented that he was glad to see a public policy, as an important component of government, being adopted. He also thanked the staff for their courtesy in past dealings.

  Mr. Frost expressed his opinion that staff needed to be free to make their own judgments on what is and isn't appropriate for distribution, and expressed support for the Public Information Policy.

  Mr. Snoke made a general statement in support of the public policy, noting that if issues come up later, they would be addressed.

  Note: Ms. Cosentino remarked again on fee structures; most of her comments were inaudible on the tape.

  Note: Mr. Warner explained that the policy is subject to staff discretion and represents the outside parameters. Some of his comments were inaudible on the tape.

  Mr. Glazier agreed with Mr. Warner's comments and noted that this was not an effort to restrict information, but to provide a policy on which to fall back.

  Ms. LeMay asked for a copy of the old policy.

  On motion by Mr. Wood, second by Mr. Musser and unanimous vote, the Board approved the Public Information Policy as presented.

FINANCE DEPARTMENT - Ms. Olson reported on the following:

• LCSWMA Preliminary Results Actual vs. Budget - All Programs for the Month ended May 31, 2002.
  
  
• LCSWMA Accounts Receivable Report and Past Due Detail Analysis as of May 31, 2002.
  
  
• Approval of Disbursements - On motion by Mr. Snoke, second by Mr. Musser and unanimous vote, the Summary of Disbursements for May 2002 in the total amount of $3,833,498 and for April 2002 in the total amount of $4,342,795 were unanimously approved.

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

• Summary Tonnage Report - During May, both total revenue tons and total tip fee revenues exceeded budget for the month. A total of 54,107 revenue tons were received which was 2,473 more tons than budgeted. The Resource Recovery Facility received 35,267 revenue tons or 5.34% more tons than budgeted. Revenue tons to the Landfill were 18,674 tons or 3.32% more tons than budgeted. Total system revenue tons year-to-date are 231,814 which is 9,749 tons ahead of budget.
  
  
• Solid Residual Waste - Three-year Waste Services Agreements were renewed in May with Woodstream Corporation Inc. and Dodge Regupol.
  
  
• Liquid Residual Waste - During May, the Liquid Treatment Plant received 464,129 gallons of waste and revenues of $22,148. A letter was sent to all LTP customers reminding them that the plant will cease commercial operation on June 30, 2002.
  
  
• Transportation Compliance Plan - Hauler compliance with the TCP continues to be good. A letter was sent to all the haulers informing them that in lieu of automatically imposing monetary penalties for violations, we will continue to monitor hauler activities and serve in an advisory capacity.
  
  
• Glass Residue - Approval has been received from DEP to use mixed broken glass, in lieu of crushed stone, in the landfill gas project. It is estimated that 150 tons of glass will be needed in the first phase of the gas well construction and arrangements are being made with Cougle and Recycle America for us to backhaul their material.
  
  
• RRF Ferrous Market - Roanoke Electric Steel Mill in Virginia has determined that the small RRF ferrous is an acceptable material when shredded and blended. We have entered into a six month agreement with Summit Resources Group to market the ferrous effective June 1, 2002.
  
  
• Waste Tire Processing and Recycling Agreement - On motion by Mr. Wood, second by Mr. Snoke and unanimous vote, the Board approved entering into a Waste Tire Processing and Recycling Agreement with A&R Tire Sales and Recycling, Inc. for one year beginning June 1, 2002 at $78.00 per ton, with the option to extend for two additional one-year terms upon mutual agreement of both A & R and the Authority.
  
  
• Computer Recycling Program - On motion by Mr. Frost, second by Mr. Wood and unanimous vote, the Board approved continuing the Computer Recycling Program and acceptance of computer scrap at the HHW facility with the same fee structure and extension of the marketing agreement with Waste Management, Inc. for a second year at the same pricing and level of service.
  
  
• Employee Healthcare Plan Renewal - After discussion and on motion by Mr. Frost, second by Mr. Wood and unanimous vote, the Board approved Staff recommendation to renew the HealthGuard POS as the Authority's medical plan effective July 1; and that employees who enroll in the Plan contribute to the cost of the premiums in the amounts of $9.50 per pay for single coverage, $19.00 per pay for two party coverage, and $28.50 per pay for family coverage effective the first pay period of the fourth quarter of 2002. Also, the Board approved an increase in the Dental/Vision benefit to $750 per employee per year effective January 1, 2003.
  

OPERATIONS DEPARTMENT - Mr. Zorbaugh reported on the following:

• Administrative - The Authority worked with Royal Green Metal Recyclers, the market for large ferrous metal recovered at the RRF, on a clean-up effort for discolored metal delivered by the Authority and processed through their shredder resulting in unsaleable material for Royal Green. The Authority will be reimbursed for the incurred expenses from the Government Self Insurance Fund. Expenses should be between $15,000 and $30,000.
  
  
• Facility Operations - All facilities operated well and within regulatory compliance through the month of May.
  
  The Transfer Station continued to utilize the expanded tare weight program. During May, 25% of all transactions utilized this one-weigh system, thus significantly reducing congestion and delays at the outbound scale. The amount of vehicles using the Transfer Station exceeded 7,500 in May.
  
• Safety Program - During the month of May, there were no notable accidents to report at any of the Authority Facilities.
  
  
• Bitner Property Utilization - On motion by Mr. Frost, second by Mr. Wood and unanimous vote, the Board approved staff recommendation for the demolition of the Bitner property located at 3151 River Road as an alternative to the extensive renovations needed of the dwelling.
  
  
• Purchase of a Used Landfill Compactor - On motion by Mr. Snoke, second by Mr. Wood and unanimous vote, the Board approved the award of the contract for the purchase of a used 826C Landfill Compactor to Cleveland Brothers Equipment Company, Inc. for the bid price of $95,000.
  

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

• Site Operations - Electric revenues for May were $1,064,733, or $30,733 ahead of budget. Revenues exceeded budget due to a 23% increase in boiler availability since there were no lengthy scheduled outages in May.
  Unit #2 was brought down to repair a leak in the roof of the 2nd pass. Total downtime for the event was 61.5 hours, and Unit #2's availability was 91.7% in May.

  Unit #3 was brought down to repair a tube in the economizer section. The boiler was back on-line within 26 hours, and its availability for the month was 96.5%.

  Covanta processed 34,400 tons of waste in May, or 35% higher than last month, due to the absence of major unit outages. Also on or about May 10th, or 11 years, to the day, after the Authority officially "accepted" the facility from Ogden, the plant processed its 4 millionth ton of waste.

• Regulatory Activities - Randy Weiss of DEP visited the facility on May 14th for his monthly operational inspection. There were no discrepancies noted in his report.
  
  
• Other Activities - Presented a paper entitled "Dealing with Residual Wastes at the Lancaster County RRF", at the 10th Annual North American Waste-to-Energy Conference held on May 6 - 8 in Philadelphia.
  
  A meeting was held with CDM and Elizabethtown Borough to discuss progress made to date on the project to double the treatment capacity of the borough's wastewater treatment plant. This project is nearing completion and operations at the RRF have not been affected.
  

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

• Capital Project Administration - Work continues on the 1299 Renovation Project. Work will soon include placing new ceilings, window trim, etc.
  
  Cell 5 Pre-Construction - Engineering work has been completed for the Minor Permit Modification. The Response for Qualifications will be distributed in August, and Bid documents should be available in October, with award of the bid in December and project start-up early in 2003.

  CFI Site - ARM completed a preliminary report on the findings to date. The property is contaminated (soil and groundwater) with both petroleum by-products and solvents. A meeting will be held in June with the Owner to negotiate a purchase price for the property.

• Facility Compliance and Assurance - Work was completed for the spring bio-assay and field work associated with the Mann's Run Study portion of the Creswell Re-Use Work Plan. All laboratory analyses have been received and distributed to ARM and the peer review consultant. In late June or early July a preliminary report regarding these findings is expected. The Surface and Sub-Surface Investigation Work Plan has been submitted to DEP, and having received their approval, plans are to begin the invasive work (borings and LF gas wells) the week of June 17th.
  
  Gannett Fleming conducted the "gap-analysis" site visits at each of the facilities. A meeting is scheduled for June when they will report on their findings.
  
  
• 1299 Renovations; Change Order #1 - While work continues on the 1299 Renovation Project, three (3) issues have developed which require staff to present to the Board for possible change order items:
  
  
  1. $ 4,618 due to Manheim Township requirements
  2. $ 2,695 due to electrical panel replacement
  3. $27,398 for additional renovations
     
     
  Inclusive of the above, contract amounts for the four (4) primes will total $335,054.

  On motion by Mr. Snoke, second by Mr. Musser and unanimous vote, the Board approved Change Order #1 to the applicable Contracts in the amount of $34,711. In addition to the change in Contract Price, the Contract Time will be extended three (3) weeks such that Substantial Completion will be required by August 8.

• Frey Farm Landfill; Concrete Paving Project - In conjunction with the upcoming radioactivity monitoring program, the inbound scales at all facilities will require renovations. At the Frey Farm site, a concrete approach slab has been included in the scope of work to minimize the effect that truck traffic has on asphalt paving. On motion by Mr. Frost, second by Ms. Hammel and unanimous vote, the Board approved entering into an Agreement with the low bidder, Doug Lamb Construction, Inc., for the Frey Farm Landfill Concrete Paving Project in the amount of $22,750.
  
  
• Radiation Monitoring Equipment - After discussion and on motion by Mr. Snoke, second by Mr. Frost and unanimous vote, the Board approved staff's recommendation to enter into a Procurement Agreement with Exploranium for two (2) hard mount systems and one (1) multi-channel analyzer for the purchase price of $48,900. Additionally, upon concluding further evaluation, staff will procure the two (2) MircroR and GMSM meters from the supplier who provides the lowest cost.
  
  
• Frey Farm Landfill and Creswell Landfill Water Quality Monitoring Plan Review - After discussion and on motion by Mr. Musser, second by Mr. Snoke and unanimous vote, the Board approved staff recommendations to enter into a Professional Services Agreement with SAIC for the Frey Farm Landfill Water Quality Monitoring Plan Review at a cost not to exceed $22,500, and enter into a Professional Services Agreement with ARM Group for work associated with the Creswell Landfill Water Quality Monitoring Plan Review at a cost estimated at $65,500 (2002 budget at $50,000).
  

CITIZENS ADVISORY COMMITTEE

The CAC met on June 12, 2002. The CAC took a bus tour of the Frey Farm and Creswell Landfills. The next meeting of the CAC will be held on August 14, 2002.

ADJOURNMENT

The Board meeting adjourned at 11:25 A.M. Following the meeting, the Board of Directors went on a bus tour of the Frey Farm and Creswell Landfills.

APPROVED BY THE BOARD OF DIRECTORS OF THE LANCASTER COUNTY SOLID WASTE MANAGEMENT AUTHORITY THIS 16TH DAY OF AUGUST, 2002.

Lester O. Houck, Secretary