Minutes of the Board of Directors Meeting
September 15, 2000

The Board of Directors of the Lancaster County Solid Waste Management Authority met on Friday, November 17, 2000 at 7:30 A.M. at the Authority office, 1299 Harrisburg Pike, Lancaster, PA.

Board of Directors present were: Chairman Frost, Ebel, Hammel, Kassees, Musser, Spangler, Varljen and Wood. Absent was Clark. Staff present were: Warner, Garner, Lausch, Norris, Olson and Dougherty. Also present were Solicitor George T. Brubaker, Hartman Underhill & Brubaker; Glenn Hoag and Tom Wilton, Ogden Martin Systems of Lancaster; Ad Crable, Lancaster New Era, and a representative from WGAL TV-8. Members of the public included: Erica Runkles, John F. Haser, Jr., Brad Hepfer, Jay Brenner, F. Robert Bare, Mary Fritz, Evelyn Stehman, David Hill, Dwight Yoder, Ann McCall, Barry L. Gehman, Donna Bare, Mike Bare, M. ?, Jim Huber, Fred Baum, Bill Saylor, Scott Cagno, ron Harper, Ann Kirchner, Larry Kirchner, Jeffrey Gascon, Manlon Adams, Hope Krantz, Cabell Kladkey, Keim M. Stewart, Mary H. Gazier, Ed Kladky, and Lucy Lacy.

APPROVAL OF THE MINUTES

On motion by Kassees, second by Hammel and unanimous vote, the Minutes of the August 11, 2000 meeting were approved.

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

• Operating Results - Financial results for August were absolutely outstanding as we benefitted from continued strength in all of our waste categories along with receiving considerable waste from the Berkley landfill cleanup job in Denver, PA. The operating surplus for the month was $383,756, after allocating $1.3M to reserve funds. Operations expenses remain under control, despite tonnages running well above expectations and at record levels.
  
  
• CFI Property - The purchase of the CFI Property, adjacent to the Transfer Station, is proceeding with the potential acquisition by possible funding through Act 2. ARM is preparing to complete the Environmental Assessment work and then calculate the cost to properly clean up the site.
  
  
• Debt Rating - Warner and Olson had a conference call with Standard & Poor's to review our credit rating. They are very pleased with where we have been since our Bond Reissue and requested information on our surplus, future capital costs, contract and electrical revenue. The report will be going to a review committee for final action by S&P.

FINANCE DEPARTMENT - Olson reported on the following:

• LCSWMA Preliminary Results Actual vs. Budget - All Programs for the Month and Eight Months Ended August 31, 2000.
  

• LCSWMA Accounts Receivable Report and Past Due Detail Analysis as of August 31, 2000.
  
  
• Approval of Disbursements - On motion by Musser, second by Wood and unanimous vote, the Summary of Disbursements for August 2000 in the total amount of $3,441,680 were unanimously approved.
  
  
• Annual Audit - On motion by Kassees, second by Varljen and unanimous vote, the Board approved Trout Ebersole & Groff to perform the annual audit of the Authority for the year ended December 31, 2000 for a fee estimate of $25,000 to $30,100.

ADMINISTRATIVE SERVICES DEPARTMENT - Lausch reported on the following:

• Waste Stream Management - The Summary Tonnage Report - Actual Results vs. Budget for the Month and Eight Months Ended August 31, 2000 was reviewed. Total revenue tons received for processing and/or disposal at Authority facilities in August were 68,095 tons, which broke the all time single month tonnage record of 62,996 set back in August of 1996.

• Solid Residual Waste - A three-year Service Agreement was signed with Alcoa to continue to receive the waste generated at their Lancaster, Lebanon and Frederick, Maryland plants.
  
  
• Delivery and disposal of the material from the Berkley Project continues to go smoothly and we continue to receive 500 tons per day. Due to the fall boiler outages at the RRF, after September 15 we will be accepting 200 tons per day from the project.
  
  
• Liquid Residual Waste - During August, 535,654 gallons of waste were delivered to the Liquid Treatment Plant. Revenue for the waste was $23,685, or $2,632 ahead of budget. Hamilton Precision Metals shut down their evaporators due to natural gas prices, and beginning in September we will receive 7,000 to 10,000 gallons per week. Revenue from Hamilton should be between $12,000 and $18,000 per year.
  
  
• Recycling - We received notice from DEP that the 902 Grant submitted for the purchase of 14 gallon curbside recycling containers, six gallon multi-family recycling buckets, 55 gallon recycling drums and lids, and various recycling promotional materials in the amount of $123,403 has been approved.
  
  
• Insurance Renewals - September 25 is the renewal date for property, commercial general liability, umbrella liability, business auto liability and physical damage, public officials and employees, liability, crime, and workers' compensation insurances. This year quotes were also received for pollution liability coverage. We did not retain a consultant to assist with specifications, market assignment, and proposal analysis.

Following a detailed, lengthy discussion and question/answer period, and on motion by Kassees, second by Hammel and unanimous vote, the Board approved that insurance coverage be placed through Murray Insurance Associates as follows:

Property - CNA - $198,000,000 coverage with a $50,000 deductible and business interruption waiting period of 15 days on property, and $150,000 deductible and business interruption waiting period of 20 days on the turbine/generator; General Liability/Pollution Liability - AIG general liability policy of $1 million per occurrence and $2 million aggregate with pollution liability coverage of $3 million, excess of $2 million self insured retention; Umbrella - AIG umbrella coverage of $10 million; Business Auto - St. Paul $1 million combined liability coverage and physical damage coverage with a $500 deductible; Public Officials - AIG coverage with $1 million occurrence and $1 million aggregate; Crime - Hartford crime coverage at a level of $100,000; and Workers' Compensation - Guard workers' compensation coverage with limits of Coverage A statutory and Coverage B at $1 million/$1 million/$1 million.

OPERATIONS DEPARTMENT - Garner reported on the following:

• Administrative - Starting September 18, a two man night shift will be implemented to deliver waste from the Transfer Station to the Resource Recovery Facility. The change to a two man night shift was driven by the need to manage increased tonnages, the continued increase in late day deliveries, and traffic congestion. The night shift operation will be from 10:00 P.M. until 7:30 A.M.

• Landfill - In August, the FFLF continued to accept 500 TPD of waste from cleanup of the Berkley Products Landfill Project. Landfill staff continued their efforts with monitoring and coordinating deliveries to be sure we do not exceed the daily tonnage limit of 2,000 TPD.
  
  
• Resource Recovery Facility - The new aluminum body dump truck was placed in service, and we were able to improve upon our current tonnage per trip. The legal payload of the aluminum body truck is 23.9 tons, which is over 2 tons per trip above the steel-bodied dump trucks. Over the next year, we will monitor the performance of the aluminum body in order to determine the longevity with our ash hauling application.

RRF CONTRACT ADMINISTRATION DEPARTMENT - Glenn Hoag reported on the following:

• Site Operations - Electric revenues for August totaled $1,401,115, or $77,000 below budget estimates. The budget figure was not met due largely to the occurrence of three mini-outages during the month.

A total of 35,168 tons of waste was delivered to the facility in August, improving 14% from July.

The units operated 95.2% of the time in August, or 4.8% lower than last month due to the mini-outages. Each outage lasted approximately 32 hours, and the work completed included the explosive cleaning of the flue gas paths in the superheater and economizer sections of the boilers. Unit #2 was taken off-line on August 23^rd so that several broken grate bars could be replaced. The unit was out-of service for 15 hours while the repairs were made.

Preparations are underway for the scheduled fall boiler outages.

TECHNICAL SERVICES DEPARTMENT - Norris reported on the following:

• Administrative - Work continues on the 2001 Budget, Capital Projects, Goals and Objectives and subsequent 5 Year Plan.
  
  
• Capital Project Administration - Per the upcoming revised regulations, we completed an "implementation schedule" regarding the Radioactivity Monitoring requirements. DEP has indicated our Action Plan submittals for each Facility will be considered a Major Permit Modification which requires, among other items, public notification via newspaper advertising of the intended modification.
  
  
• Facilities Compliance and Assurance - We received a response from DEP to our May, 1998 submittal on Frey Farm Traffic Analysis (completed per the Executive Order). Our submittal had been forwarded by DEP to PennDOT for review and comment.

PUBLIC COMMENT

There was no public comment.

EXECUTIVE SESSION

The Board went into Executive Session at 9:00 A.M. to discuss real estate matters.

ADJOURNMENT

There being no further business to come before the Board, the meeting adjourned at 10:05 A.M.

APPROVED BY THE BOARD OF DIRECTORS OF THE LANCASTER COUNTY SOLID WASTE MANAGEMENT AUTHORITY THIS 17^TH DAY OF NOVEMBER, 2000.

John S. Kassees, Secretary