Minutes of the Board of Directors Meeting
Sept 17, 2004

The Board of Directors of the Lancaster County Solid Waste Management Authority met on Friday, September 17, 2004 at 7:30 a.m., at the Authority office, 1299 Harrisburg Pike, Lancaster, PA.

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 Brubaker of Hartman Underhill & Brubaker; Dick Shellenberger, Lancaster County Commissioner; Tom Ryan and James Alton, Lancaster County Historical Society; 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 August 13, 2004 meeting. Mr. Ebel moved that the minutes be approved. Mr. Frost seconded. Mr. Musser called a vote; the motion passed unanimously.

PUBLIC COMMENT

Ron Harper (1 Harper Lane, Stevens) asked about the trip taken by Authority management and Conoy Township officials to see an ethanol plant in Wisconsin.

Mr. Warner provided information on cost, length and reason for the trip.

Mr. Harper expressed his views on the Authority’s involvement with the proposed ethanol plant.

Carol Bromer (402 Stackstown Road, Marietta) asked questions regarding the Authority’s possible involvement with a private company.

Mr. Warner reiterated that the Authority was approached by an independent company to sell land owned by the Authority that was not in use, and accordingly a Purchase Option Agreement was drafted. Mr. Warner noted that under the Municipal Authorities Act, the Authority has the right to sell an asset.

Ms. Bromer asked why the Authority would switch from selling steam from Met-Ed to Penn-Mar.

Mr. Warner explained the Authority would continue to sell two-thirds of the energy to Met-Ed under an existing agreement that also allows the Authority to have an additional direct customer.

Ms. Bromer asked why the Authority would sell steam to Penn-Mar.

Mr. Warner said Penn-Mar had asked the Authority to consider it. The Authority then looked into how the arrangement would benefit the Authority and the County, and saw that it would create more revenue for the Authority and allow Penn-Mar to produce less emissions.

Ms. Bromer asked how the community would benefit from an ethanol plant.

Mr. Warner said that as a county-wide agency that represented the public, anything that benefitted the Authority, also benefitted the public it served. Mr. Warner explained that if the Penn-Mar project were to go through, the revenue received by the Authority would be channeled directly into capital projects that benefitted the public, such as the new Transfer Station.

Ms. Bromer said a person at the commissioners meeting said it was something to be ashamed of.

Mr. Warner said the Authority did not operate in a vacuum, and had to be financially astute and had a duty to evaluate any projects that might benefit the Authority, and by extension, the public, but that the final decision regarding the ethanol plant rested with Conoy Township.

Mary Glazier (269 Chestnut Grove Road) asked about $7.5 million identified in the grant application as earmarked for the Authority.

Mr. Warner said the Authority had nothing to do with the grant application; Penn-Mar had approached Senator Brightbill’s office about sponsoring a capital appropriations request. The Authority’s name was listed on the application because funding couldn’t go to a private entity, and if the request were to be granted, it would be used to modify the waste-to-energy plant so it could provide steam to Penn-Mar.

Mr. Brubaker reminded Mr. Warner that Penn-Mar would have to pay for all capital improvement projects up front, and that the Authority would not be put at any financial risk.

Ms. Glazier asked when the grant would be awarded.

Mr. Warner said the Authority was not involved in the process, and gathered that Penn-Mar was overseeing the status of the application.

Ms. Glazier clarified that the funding would go to the Authority for a capital improvement on a public asset.

Mr. Warner said that was his understanding.

Ms. Glazier commented that the taxpayers would be supporting a private company.

Barbara May (100 Red Fox Road, Millersville) reported on her conversations with residents of Monroe, Wisconsin regarding the ethanol plant there, and cited problems with odor and dust. Ms. May read and distributed a fictitious letter from the Governor of Pennsylvania, Executive Director and LCSWMA Board, Lancaster County Commissioners, Conoy Township Supervisors and Penn-Mar Ethanol Project Manager to the residents of Conoy and East Donegal Townships.

Pat Lemay (78 Sun Lane, Millersville) stated her opposition to the ethanol project, citing odor, emissions, storage of hazardous materials, degradation of the Susquehanna River and the negative impact on the quality of life in the community.

Mr. Musser asked for further public comment, and hearing none, moved on with the meeting.


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

• Financials - Mr. Warner gave a brief summary of the financial operating results for the month of August. The Authority continues to benefit from the amount of tonnage that is being generated.

• 2005 Budget - Mr. Warner reported that work has been ongoing on the budget. The Preliminary Budget will be presented in October.

• Penn-Mar Ethanol - At this point, PME is putting all their efforts into preparing for their upcoming Conditional Use Hearings in Conoy Township. Those hearings begin September 22nd.
• Annual Fall Conference - The annual fall conference was held at State College. Ed Gordon along with some staff were in attendance. This is the meeting where the Keystone Chapter of the Solid Waste Association of North American (SWANA), the Pennsylvania Waste Industries Association (PWIA), Department of Environmental Protection (DEP) and the Pennsylvania Host Municipal Inspectors (PAHMI) meet to discuss issues surrounding the Pennsylvania waste industry. At the meeting, updates were heard on waste transportation implementation plans, safety, litigation and capacity. Mr. Warner added that there is serious deterioration of landfill capacity, especially east of the Susquehanna River.

Some landfills are reaching capacity and expansions are not being renewed.

Mr. Warner added that he has been elected President of the Keystone Chapter of SWANA and will be looking into working with PWIA on the capacity situation and starting dialogue with DEP.

• Transfer Station - A meeting was held on September 16th with Gannett Fleming to address the numerous issues surrounding this project. The project should be out for bid the second week in October.

• Lancaster County Historical Society Funding Request - Mr. Warner introduced Tom Ryan, Executive Director and James Alton, Assistant Director of the Lancaster County Historical Society, who made a 10 minute presentation to the Board requesting funding in the amount of $10,000. This funding represents the lead gift to contribute towards the planning stage of the “Along the Susquehanna” exhibit.

Mr. Rosier asked if the exhibit would travel.

Mr. Ryan said there would be two major exhibitions at the York Heritage Trust and at the Lancaster County Historical Society. There would be another component, which would be a scaled down version of the exhibition, that would go out to libraries, schools and smaller historical organizations.

Mr. Gordon asked about the intended benefit of the exhibit.

Mr. Ryan said that by looking at the history of the river, from pre-history through its present uses, the public would have a much more enlightened position as to the critical importance of this river. Mr. Ryan added that the more we know about how it had been used in the past, the better position we would be in to make decisions about how it could be used in the future.

Mr. Gordon asked if increased tourism or economic development in the region was part of the goal.

Mr. Ryan said that the Lancaster-York Heritage Region would answer yes to that question.

Mr. Musser read the recommendation. On motion by Mr. Kassees, second by Mr. Frost and unanimous vote, the Board approved the funding in the amount of $10,000 for the Lancaster County Historical Society.

FINANCE DEPARTMENT - Ms. Olson reported on the following:

August results show that revenue is over budget and expenses are under budget. The revenue is due to the tonnage being over budget. As a result of the increased tonnage, there is also an increase in regulatory fees for the month. For the month of August, $900,000 was added to the restricted reserve fund. The following reports were reviewed:

• LCSWMA Preliminary Results Actual vs. Budget - All Programs for the Month ended August 31, 2004.
  
• LCSWMA Accounts Receivable Report and Past Due Detail Analysis as of August 31, 2004.
  
• Approval of Disbursements - On motion by Mr. Gordon, second by Mr. Wood and unanimous vote, the Summary of Disbursements for August 2004 in the total amount of $4,404,560 was unanimously approved.
  
• LCSWMA 2004 Capital Projects and Equipment Comparison showing the difference in the Capital Budget and Capital Forecast which should come in $883,000 under budget.
  
• Annual Audit for the Year Ended December 31, 2004 - On motion by Mr. Kassees, second by Mr. Rosier and unanimous vote, the Board approved Trout Ebersole and Groff, LLC to perform the Annual Audit of the Authority for the year-end December 31, 2004.
  
• Appoint Audit Committee - Mr. Musser appointed Mr. Kassees, Mr. Gordon, Mr. Rosier and himself to the Audit Committee.
  
  
  ADMINISTRATIVE SERVICES DEPARTMENT - Mr. Lausch reported on the following:
  
• Summary Tonnage Report - Total revenue tons for August were 54,487, which was 9.17% ahead of budget. Tipping fees were also ahead of budget at $3,252,529, or up 6.9%. The Resource Recovery Facility received 36,792 tons and Landfill deliveries were 17,563 tons. All the major categories of waste were ahead of budget. Total MSW was 39,910 tons, as Refuse was up by 2% and Construction/Demolition waste was 38% above budget. The 9,820 tons of C&D received in August was the highest C&D month ever. Total Residual and Special Waste were also over budget at 14,445 tons as in-county deliveries were 9% over budget and out-of-county deliveries were 17% ahead of budget. Year-to-date, total revenue tons are 390,356.
  
  Mr. Warner said refuse was up 10% year-to-date over 2002, which amounted to a 30,000 ton difference.
  
  Mr. Musser asked about construction and demolition waste and the Milton Grove Landfill.
  
  Mr. Lausch said the construction and demolition projects, like the ballpark and school projects, have added to the C&D waste.
  
  Mr. Ebel asked if the increase in MSW was attributable to economic growth, increase in C&D or other waste.
  
  Mr. Warner said it was all of those things, adding that there was a 30% increase (100,000 tons) in waste over the last 8 years, which was why out-of-county waste had diminished to 40,000 tons.
  
  The Authority has tried to keep tonnage in the 570,000 - 580,000 range because that is where the Authority can balance its financial goals, achieve operating efficiencies and preserve landfill space.
  
• Residual Waste - No new Waste Agreements were entered into in August. Staff was busy coordinating and scheduling event business.
  
• Recycling Program - Columbia Borough, with the assistance of the Recycling staff, will be conducting an open house and tour of their municipal yard waste composting facility on September 21st. The intent of the event is to promote the use of their facilities and get other municipalities interested in bringing materials to them. It also gives the Authority an opportunity to demonstrate the wood shredder to municipal representatives who will attend that day.
  
  In cooperation with Penn State Cooperative Extension Service Master Gardeners and five municipalities, staff is planning and providing assistance with backyard composting workshops that will be held this month and in October. The Authority has purchased grant-eligible compost bins and prepared informational materials and promotional news articles for the workshops. The workshops will be held in Elizabethtown, Lancaster City, Warwick Township, West Earl Township and West Lampeter Township on Saturday mornings.
  

Property and Casualty Insurance Renewals - The renewal date for property and casualty insurance is September 25. FM Global and Murray Insurance Associates provided quotes for renewals. After review and discussion, motion by Ms. Hammel, second by Mr. Frost and unanimous vote, the Board approved the recommendation that the property insurance be placed with FM Global and the casualty insurance be placed through Murray Insurance Associates, in accordance with renewal coverages discussed and recommended. Total premiums for all coverages this year is $739,902. (This amount shows a reduction in premiums of $97,040, or 12% over last year’s premiums).

COMMUNICATIONS PROGRAM - Ms. Buller reported on the following:

The Authority sponsored a blood drive with the Central Pennsylvania Blood Bank on September 2. The Blood Mobile was stationed at the Resource Recovery Facility in the morning and the Transfer Station/office in the afternoon. A total of 41 pints of blood were donated to the blood bank.

The new website launch is taking longer to complete than estimated. We have taken steps which will speed up the process. Certain staff members have been trained on the basic elements of website design.

The Summer edition of the Garbage Gazette was distributed. An extra edition has been planned for December. The next Hauler Newsletter is scheduled for distribution in late November.

The date for the second annual Manor Township informational meeting has been set for Thursday, November 18th and will be held in the Highville Fire Hall at 7:00 p.m. This information will be posted on the Authority’s website, Manor Township’s website and announced at Manor Township meetings and published in their newsletter which is due out at the beginning of October.

A press release was prepared for the upcoming Composting Workshops and distributed to municipalities and local newspapers. There are 120 people signed up thus far for the five workshops.

OPERATIONS DEPARTMENT - Mr. Zorbaugh reported on the following:

• Administrative - A considerable amount of time was spent with Gannett Fleming reviewing Drawings and Specifications of the Transfer Station. On September 7th, a meeting was held by the Manheim Township Zoning Hearing Board and the Authority received requested variances.
  
  The RRF Tipping Floor Expansion project is ongoing and the project is in the final stages.
  
  The Frey Farm Scale House replacement will be out for bid next week. Work should be completed in November.
  
  A kick-off meeting was held involving the Reiber House relocation project. The Authority has begun cutting in the road that will allow the house to be relocated. The house is planned to be moved in October.
  
• Facility Operations -The wood shredder rental program to municipalities has been scheduled 14 days in the next six weeks to do shredding work.
  
  The HHW Facility had Cycle Chem provide a bulk material pick-up of ten tons of material.
  
• Safety - The Employee Safety Committee met in August for training which covered Employee Incident Investigation. The month of August concluded with no lost-time incidents or accidents involving any significant damage to Authority property. September 7th was the 300th day without a lost-time accident.
  
  Mr. Ebel asked what happens to the computers that are shipped to market.
  
  Mr. Zorbaugh said they go to Enviro-Cycle who does disassembly of the parts.
  
  Mr. Ebel noted that the Lancaster County Conservancy appreciates the cooperation that staff has given to the extension of the Turkey Hill Trail.
  
  Mr. Zorbaugh added that a few weeks ago, the Authority received a copy of a letter that was sent to the Conservancy from a gentlemen who apparently tried to hike the Turkey Hill Trail but found part of the trail was overgrown. After discussion with the Conservancy, Authority staff did clear the area that was referenced in the letter.

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

• Site Operations - Electric revenues for August were $1,104,066, which was $50,066 over budget, since the boilers operated with little downtime.
  
  The Unit #1 economizer section became clogged and the unit was taken down for about one and one-half days for cleaning. Unit #3 ran at 100% and Unit #2 at 99%. The boilers ran an average of 98% during the month.
  
  The ferrous recovery system removed 729 tons of metal from the ash for recycling. The system is operating very well.
  
• Regulatory Activities - Randy Weiss of DEP was on site for an inspection in August. He was pleased with what he saw.
  
• Other Activities
  
  The tipping floor expansion project is proceeding on schedule, and should be completed by the end of October.
  
  Third quarter ash sampling was completed last week and results should be in next month’s report.

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

• Capital Projects
  
  Transfer Station Design Work continues with Gannett Fleming. To date, responses have been received to the RFQ from 12 General Contractors and Electrical Contractors and 8 from Plumbing and HVAC Contractors. The RFQ’s are due the end of next week.
  
  Phase 3 Capping Project is coming to a close. The contractor is on track to be substantially complete by the end of the September. There have been no change orders or requests for time extensions.
  
• CFI Project - We received the third DCED grant reimbursement for the project. To date, the Authority has received $122,000 for the Phase II site characterization activities.
  
• Technical Support
  
  Staff has been very busy producing all the drawings in-house for the Landfill Scale House Project.
  
  Final revisions and a Request for Proposals for the Laboratory Analytical and Field Services as required by the Authority should be completed in late September or early October.
  
  The NPDES renewal application for the FFLF stormwater discharge has been submitted for a five-year renewal. Also, the Landfill Title V permit is up for renewal and this application will be submitted in October for the five-year air permit.

CITIZENS ADVISORY COMMITTEE

Mr. Warner stated that the CAC did not meet.


OTHER BUSINESS


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 9:15 a.m.

APPROVED BY THE BOARD OF DIRECTORS OF THE LANCASTER COUNTY SOLID WASTE MANAGEMENT AUTHORITY THIS 15TH DAY OF OCTOBER 2004.

Barbara B. Hammel, Secretary