Minutes of the Board of Directors Meeting
November 15, 2002

The Board of Directors of the Lancaster County Solid Waste Management Authority met on Friday, November 15, 2002, at 7:30 A.M. at the Authority office, 1299 Harrisburg Pike, Lancaster, PA.

ATTENDANCE

Board of Directors present were: Chairman Ebel, Frost, Hammel, Houck, Kassees, Musser, Rosier, Snoke 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 and citizens as listed on the attached sign-in sheet.

APPROVAL OF THE MINUTES

Mr. Ebel asked about additions or corrections to the minutes of the October18, 2002 meeting. Mr. Musser moved that the minutes be approved. Ms. Hammel seconded. Mr. Ebel called a vote; the motion passed unanimously.

NOTE: Public comments that are not made at the podium cannot be recorded and will not be in the minutes.

PUBLIC COMMENT

Rhea Cosentino (232 Oak Road) asked why commingled materials collected at the Landfill were not credited to Manor Township.

Mr. Warner said he could think of no problems with weighing the commingled materials at the Landfill separately, and crediting the tonnage to Manor Township.

Ms. Cosentino commented that residents might find it convenient to recycle their newspapers at the drop-offs. She also commented that if a transfer station were ever developed in southern Lancaster County, that it should include a recycling drop-off center.

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

• Resolution No. 2002-10 - Mr. Ebel read Resolution No. 2002-10. On motion by Mr. Frost, second by Mr. Wood and unanimous vote, the Board adopted Resolution No. 2002-10. The Resolution approved and adopted the 2003 Operating Budget, the 2003 Capital Projects and Equipment Budget and the 2003 Rules and Regulations. Mr. Warner added that the budget was presented to the waste haulers, public officials and Citizens Advisory Committee.

Penn Glazier (269 Chestnut Grove Road) asked about the "Creswell Real Estate" line item in the budget.

Mr. Warner replied that under the Consent Agreement, if property owners come forward, the Authority has an obligation to buy their property at fair market value. For budgetary reasons, the total liability over the next five years was calculated, then divided by five. Mr. Warner explained that the final figure depends on the number of property owners that come forward each year.

FINANCE DEPARTMENT - Ms. Olson reported on the following:

• LCSWMA Preliminary Results Actual vs. Budget - All Programs for the Month ended October 31, 2002.
  
  
• LCSWMA Accounts Receivable Report and Past Due Detail Analysis as of October 31, 2002.
  
  
• Approval of Disbursements - On motion by Mr. Rosier, second by Mr. Kassees and unanimous vote, the Summary of Disbursements for September 2002 in the total amount of $4,097,185 were unanimously approved.

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

• Summary Tonnage Report - During October, the total revenue tons were on budget at 51,621 tons and total tip fee revenues were just under budget at $2,954,994. Year-to-date, we have received 476,410 revenue tons, which is 15,529 tons or 3.37% ahead of budget.
  
  
• Residual Waste - A Waste Services Agreement was entered into with Donsco for foundry sand. We are now also receiving sand from Paul Zimmerman Foundry in Marietta and Flury Foundry in Lancaster. We should receive 7,000 tons of sand waste per year from these accounts. The sand will be used as alternative daily cover or protective cover enhancement layer in Cell 5.
  
  
• Commingled Bottles/Cans Agreement and White Goods/Large Ferrous Agreements - Agreements with Cougle's in Hamburg for commingled bottles/cans and with Royal Green Corporation in Reading for processing white goods and large Resource Recovery Facility ferrous will be extended for an additional year.
  
  
• Insurance - The Travel Accident policy was renewed. The policy provides coverage for employees and Board members while traveling on Authority business. The renewal is with Reliance Standard Life in Philadelphia for a premium of $1,235 per year for three years.

  On October 22, a representative from AIG's liability and pollution division toured and audited all our operating facilities.

  As a result of the audit of our workers compensation policy through Guard Insurance for the period September 25, 2001 to September 25, 2002, we will receive a credit in the amount of $2,599.
  

• Benefits - Based on the meetings held with representatives from Lancaster General's Education and Wellness Center and Authority employees, the Authority will be moving ahead with a Wellness Program.
  
  
• Resolution No. 2002-11 - Mr. Ebel read the resolution. After discussion and on motion by Mr. Frost, second by Mr. Musser and unanimous vote, the Board adopted Resolution No. 2002-11 adopting certain amendments to the Lancaster County Solid Waste Management Authority Code 457 Eligible Deferred Compensation Plan to comply with the Internal Revenue Code and other applicable regulations.
  
  
• Resolution No. 2002-12 - Mr. Ebel read the resolution. On motion by Ms. Hammel, second by Mr. Snoke and unanimous vote, the Board adopted Resolution No. 2002-12 adopting the Lancaster County Solid Waste Management Authority Flexible Benefit Plan to provide eligible employees with the ability to make their contributions toward the cost of the LCSWMA Employee Healthcare Plan pre-tax.
  
  
• Amended Statement of Employment Policies, Procedures and Benefits - On motion by Mr. Snoke, second by Mr. Frost and unanimous vote, the Board approved the Statement of Employment Policies, Procedures and Benefits as revised and amended to be effective January 1, 2003. These amendments were reviewed by the Solicitor.
  

COMMUNICATIONS PROGRAM - Ms. Buller reported on the following:

• A tour of Authority facilities was held on October 2 for 48 members of the Leadership Lancaster Class of 2003.
  
  
• A meeting was held with a reporter of Voice of America who interviewed Bob Zorbaugh and Gary Forster for a series entitled, Garbage in America.
  
  
• The Community Recycling Leadership Award was presented to the Authority by the Rechargeable Battery Recycling Corporation at the Public Officials Meeting on November 7 in recognition of 10 years of recycling batteries. The Authority has received over 500,000 pounds of recycled batteries.
  
  
• Researching the possibility of recycling thermometers that would be recycled under the HHW Facility. The Authority would purchase digital thermometers and residents who brought in their mercury thermometer would receive an environmentally friendly thermometer in exchange, free of charge. DEP may be a co-sponsor of this program.

OPERATIONS DEPARTMENT - Mr. Zorbaugh reported on the following:

• Administrative - A considerable amount of time was spent over the last month by Facility Managers and Mr. Zorbaugh reviewing the LCSWMA's Rules and Regulations for 2003.

  Numerous training seminars were attended during the month including: DOT Drug and Alcohol Testing/Awareness and Conducting Employee Evaluations. Mr. Zorbaugh attended the SWANA 3-day 30 hour training course on Transfer Station Design. Also various employee safety training courses were conducted on Confined Space Entry, Bloodborne Pathogen Exposure and Backhoe Safety.
  

• Facility Operations - All facilities operated well and were in regulatory compliance through the month of October.
  
  
• Safety Program - During the month of October, there were no notable accidents to report at any of the facilities.

Mr. Rosier asked about the frequency of Manor Township Vehicle Inspections.

Mr. Zorbaugh replied it has been done twice this year in conjunction with DOT and Manor Township (as part of the Waste Transportation Compliance Plan).

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

• Site Operations - Electric revenues for October were slightly below budget, but we are anticipating electrical revenues for the year to be $11.8 million.

  Covanta finished its fall outage tasks on Unit 1 on October 1st.

  At the request of Ms. Hammel, an additional chart has been provided entitled, "Comparison of RRF Boiler Availability; 1998 through 2002". <> Covanta processed 31,540 tons of waste in October, or 26% higher than last month due to the absence of major scheduled outages.
  
  

• Regulatory Activities - Randy Weiss of DEP was on site for an inspection on October 11th and October 30th. His inspection reports had no operational violations.

  Final ash tests have been submitted to the DEP, and we are currently 50% or more below federal regulatory thresholds for cadmium and lead.

  There were also no emission exceedances during the month of October.
  
  

• Site Improvements - Covanta has been performing site improvements that will enhance plant performance and reduce system downtime. The first upgrade is the replacement of the control room monitors and software. The second upgrade will be the replacement of two vibratory conveyors in the ash building.

Mr. Snoke asked if the upgrading of the software was a contractual requirement.

Mr. Forster replied that it wasn't, that the contractual agreement stipulates that Covanta compiles the data, keeps five years of it on site, and makes it available to the Authority.

Mr. Warner added that a committee of Covanta clients had met a few times in Washington, D.C. to review Covanta's Chapter 11 situation. Covanta had extended an offer to host quarterly meetings with the committee. A confidentiality agreement would have to be entered into before such meetings took place. In this, the Authority was represented by Hartman, Underhill & Brubaker's Josh Cohen, the Authority's bankruptcy counsel.

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

Capital Project Administration

• 1299 Renovations - A new General Contractor has been engaged for the completion of the project. The original contract scope of work should be completed by the end of November.
  
  
• Cell 5 - The Cell 5 pre-qualification process has been completed and 13 bidders attended a pre-bid meeting and site visit.
  
  
• CFI Property - The state has 90 days to respond to the Final Remediation Plan. A Request for Proposals will be prepared in order to retain a design consultant for the renovated Transfer Station Site.
  
  
• Creswell Re-Use Study - ARM continues to compile information gathered from site visits. Staff will begin field visits to facilities with similar design features.

Technical Support

• Radiation Monitoring - Staff training has begun with Facility Managers. The fixed equipment will be mounted shortly and further training will be completed. The Radiation Monitoring Plan will be in place by mid-December.

Facility Compliance and Assurance

• Laboratory Analytical and Field Services - Five (5) firms have collected samples, a mandatory requirement to submit a response to the Request for Proposals. A recommendation will be made to the Board at the December meeting.
  
  
• ISO 14001 - The final draft of the Environmental Management System Level 1 and Level 2 procedures has been completed. Work has begun on the Environmental Policy Statement and will be presented for Board approval at an upcoming meeting.

NOMINATING COMMITTEE

Mr. Ebel appointed Mr. Frost, Mr. Kassees and Mr. Rosier to serve on the Nominating Committee. Mr. Frost will chair the committee and report back with nominations at the December Board meeting.

CITIZENS ADVISORY COMMITTEE

The CAC met on October 23 and were given an overview of the Operating Budget, Capital Budget as well as operation milestones for 2002 and goals and plans for 2003.

EXECUTIVE SESSION

Mr. Ebel stated that there was a need for an Executive Session to discuss a personnel issue.

OTHER BUSINESS

There was no other business to come before the Board.

ADJOURNMENT

On motion by Mr. Musser, second by Ms. Hammel and unanimous vote, the Board meeting adjourned at 9:25 A.M.

APPROVED BY THE BOARD OF DIRECTORS OF THE LANCASTER COUNTY SOLID WASTE MANAGEMENT AUTHORITY THIS 13TH DAY OF DECEMBER, 2002.

Lester O. Houck, Secretary