Minutes of the Board of Directors Meeting
September 14, 2001

A moment of silence was observed in remembrance of the people who had lost their lives in the September 11, 2001 terrorist attacks.

ATTENDANCE

Board of Directors present were: Chairman Ebel, Frost, Hammel, Houck, Kassees, Snoke and Wood. Absent were Clark and Musser. Staff present were: Warner, Buller, Forster, Lausch, Norris, Olson, Zorbaugh and Dougherty. Also present were: Solicitor George T. Brubaker, Hartman Underhill & Brubaker; Jim Klecko, Covanta Energy; Ad Crable, Lancaster New Era; Pete Wengrenovich, Murray Insurance; and citizens as listed on the attached sign-in sheet.

APPROVAL OF THE MINUTES

On motion by Frost, second by Kassees and unanimous vote, the Minutes of the August 17, 2001 meeting were approved.

PUBLIC COMMENT

Chairman Ebel opened the meeting for public comment.

There was no comment from the public.

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

State Transportation Trash Force - Over the past few months, Warner has served on this task force, which was formed by the DEP to address the results of Operation Clean Sweep. The goal of the task force was to bring the industry (public and private) and the regulators (DEP, State Police, PENNDOT) together to develop plans to improve truck safety and achieve better compliance with certain environmental regulations. The results of this effort were unveiled in State College at the SWANA/PWIA/PADEP Fall Technical Conference held on September 5 & 6, 2001. The Authority will immediately be drafting and implementing a voluntary Transportation Compliance Plan in response to the Task Force recommendations.

Landfill Expansion - ARM is preparing engineering estimates to more closely evaluate the feasibility of future landfilling overtop the old Creswell Landfill. These estimates will be presented at the October Board meeting.

Clean Up Efforts from World Trade Center Site - Recently, Mr. Warner was asked to be on a conference call with PADEP and members of the Pennsylvania waste industry regarding assisting with clean up efforts in the wake of the September 11, 2001 national tragedy. PADEP has issued a memorandum authorizing all regional offices to modify municipal waste disposal and processing facility permits on an emergency and temporary basis as necessary to manage the municipal waste backlogs and the demolition waste generated by the terrorist attacks. The emergency trash handling procedures will be in effect through September 30, but that time frame could be extended depending on the status of recovery efforts.

Columbia Borough Revised Truck Route for Route 441 - During the last several years, informal discussions have occurred between the Authority and Columbia Borough officials regarding the possibility of improving the route used by trucks going through the Borough on Route 441. Warner explained, via an enlarged overhead photo, the proposed route. After discussion and on motion by Frost, second by Kassees and unanimous vote, the Board approved LCSWMA's support of the Columbia Borough Revised Truck Route for Route 441. Initially this support will be in the form of public awareness of the benefits of the "bypass" and include contacting the various state and local officials for which support will be ultimately required for construction to occur. Any future support request of the Authority that includes "in-kind" services or project funding contributions will only be granted with the express approval of the Authority Board of Directors.

Possible Development of Land Next to the Resource Recovery Facility - Warner was recently contacted by a realtor regarding the Authority's willingness to discuss utilization of the 57 acre agricultural parcel adjacent to the RRF. On motion by Kassees, second by Snoke and unanimous vote, the Executive Director was authorized to take appropriate actions to investigate possible development of the tract of land owned by the Authority adjacent to the RRF.

Sheriff Sale of Property at 1291 Harrisburg Pike - The property on the corner of LARA Drive and Harrisburg Pike is up for Sheriff Sale on September 26, 2001. Owning this property would provide the Authority much more flexibility for future enhancements at the Transfer Station. On motion by Wood, second by Frost and unanimous vote, the Board authorized the Executive Director, in consultation with our Solicitor, to participate in attempting to purchase the property located at 1291 Harrisburg Pike at the Sheriff Sale scheduled for that property. The price the Authority will offer at the sale will be discussed in Executive Session.

FINANCE DEPARTMENT - Olson reported on the following:

• LCSWMA Preliminary Results Actual vs. Budget - All Programs for the Month ended August 31, 2001.
• LCSWMA Accounts Receivable Report and Past Due Detail Analysis as of August 31, 2001.
• Approval of Disbursements - On motion by Hammel, second by Frost and unanimous vote, the Summary of Disbursements for August 2001 in the total amount of $3,671,933.11 was unanimously approved.
• Annual Audit for the Year Ended December 31, 2001 - Under the Authority's by-laws, the Authority is required to have an audit each year of its books. After review of Trout Ebersole & Groff's engagement letter and on motion by Snoke, second by Wood and unanimous vote, the Board approved the firm of Trout, Ebersole & Groff to perform the annual audit of the Authority for the year ended December 31, 2001.
• Amendment to LCSWMA Pension Plan - The plan needs to be amended to comply with the "GUST" amendments, which are to meet code and applicable regulations. After discussion and on motion by Wood, second by Hammel and unanimous vote, the Board adopted the First Amendment to the Pension Plan Resolution.

ADMINISTRATIVE SERVICES DEPARTMENT - Lausch reported on the following:

• Insurance Renewals - The renewal date for property, commercial general liability, pollution liability, umbrella liability, business auto liability and physical damage, public officials and employees liability, crime, and workers' compensation insurances is September 25. Two brokers were asked to provide quotes for renewals. Murray Insurance Associates quoted on all coverages, Engle-Hambright & Davies only quoted on general liability, pollution liability, umbrella, and public officials coverage. Lausch reviewed the coverages and pricing received. The total premiums for all the listed coverages is $614,375, an increase of 28% over last year's premium of $478,961.

Pete Wengrenovich, Murray Insurance Associates, Inc., commented that the insurance industry is very cyclical due to supply and demand and has been experiencing numerous consolidations. He also added that when measured against its peers, the Authority has an outstanding worker's compensation and safety record.

On motion by Kassees, second by Frost and unanimous vote, the Board approved placing coverage through Murray Insurance Associates as follows:

Property Insurance with CNA for a total premium of $336,000
General Liability/Environmental Insurance with AIG, premium of $43,988
Umbrella Insurance with AIG, premium of $50,992
Auto Insurance with St. Paul, premium of $44,385
Worker's Compensation with Guard, premium of $121,746
Public Officials & Employment Practices Liability with AIG, premium of $15,986
Crime Insurance with Hartford, premium of $1,278

At the last several Board meetings, a particular member of the public in attendance has questioned whether LCSWMA's general liability carrier is aware of the Authority's policy of issuing to each employee a key to the facility at which they work. In response to this question, Mr. Warner sent a letter to Mr. Wengrenovich addressing this issue and requested the underwriter respond. For the record, Mr. Warner read the following letter received in response to his request:

OPERATIONS DEPARTMENT - Mr. Warner introduced Bob Zorbaugh, the new Operations Manager. Mr. Zorbaugh has been with the Authority for 11 years and served most recently as the Landfill Facility Manager. Mr. Zorbaugh reported on the following:

• Administrative - Completed the Budget forecasting for the remainder of 2001 for all departments.
• Landfill - Work has been ongoing around both the Frey Farm and Creswell sites in preparation for the Landfill Open House to be held on September 28^th and 29^th.
• Transfer Station/Equipment Maintenance & RRF - Staffing needs are currently being addressed at these facilities to determine how staff may relate to filling needs within the organization. The vacant Mechanic position is in the process of being filled. This will reduce reliance on outside contractors for repairs incurred during this vacancy. The RRF has been utilizing various hauling companies to transport ash to the landfill. This has allowed an opportunity to gather data on transportation costs, as well as evaluate operation pros and cons regarding the privatization of this work.
• Household Hazardous Waste Facility - Two trailer loads of computers were delivered to Waste Management Recycle America. One load was from the Lancaster County Office warehouse, which had been storing the inventory for years. The cost is about $1,900 per trailer load.
• Purchase of Forklift Truck and Trade of 1989 Clark Forklift Truck - On motion by Wood, second by Hammel and unanimous vote, the Board awarded the contract for the purchase of the Forklift Truck from Forklifts, Inc. for the low bid price of $24,750.

Ms. Hammel asked Mr. Zorbaugh to elaborate on the three accidents that happened in August. Mr. Zorbaugh replied that two of the accidents were minor in nature. Mr. Warner added that the third was serious; the driver took the Route 30 exit at Columbia too fast and laid the rig over. There was no injury to the driver and no waste spilled. The truck sustained $10,000 worth of damage.

RRF CONTRACT ADMINISTRATION DEPARTMENT - Forster reported on the following:

• Site Operations - Electric revenues for August were $1,083,185, or $51,185 ahead of budget, since two boilers, as well as the turbine, ran all month without downtime.

On August 19^th, Unit #3 was forced offline when a furnace tube failed. Repairs were made quickly and the boiler returned to service in under 42 hours. Average boiler availability in August was 97.1%.

A total of 35,887 tons of waste was delivered to the facility in August.

• Regulatory Activities - Randy Weiss visited the site on August 15^th, accompanied by Keith Kerns, Larry Holley and Sally Lohmon of the Department. Mr. Weiss' guests were on-site to witness activities related to the DEP-sponsored "Waste Characterization Study", a state-wide program designed to provide a comprehensive analysis of Pennsylvania's residential and commercial waste streams. A team of 6 people spent one week on the Tipping Floor sorting through roughly 30 - 40 samples of various wastes to categorize their material content. A second sort, to characterize wastes generated during the winter, will be done at the RRF sometime in January or February. DEP intends to spend one year collecting data from various regions around the state in order to obtain data to help them identify additional recycling, reduction, and reuse opportunities.

Other Activities - Submitted a paper for consideration for a "Business for the Bay Excellence Award". The submittal described the RRF's ongoing efforts to reduce nutrient deposition into the Susquehanna River, and subsequently, to the Chesapeake Bay. The submittal noted that, since 1991, the RRF's on-site water treatment plant has removed nearly 1,688 tons of solids from the effluent it has received from the Elizabethtown Waste Water Treatment Plant. If the RRF had never been built, of course, these solids would have ended up in the Susquehanna River. It is estimated that during its remaining lifetime, the RRF water treatment plant will prevent an additional 4,375 tons of solids from reaching the Bay. Award notification should be by mid-October.

Forster noted that LCSWMA had its first fluorescent bulb pickup on August 30, 2001. Over 3,000 bulbs were collected between January and August.

TECHNICAL SERVICES DEPARTMENT - Norris reported on the following:

• Capital Project Administration - The Phase 2 Capping Project continues on schedule. The geosynthetics placement, including the cap liner, began in early September.

Began assembling the work scope regarding the "Tier 2" landfill gas test which is to be completed at the conclusion of the capping project.

All notifications have been completed relative to the DEP submission of the Radioactivity Monitoring Action Plan. The Action Plan will be submitted to DEP in September.

Request for Proposals have been distributed to possible consultants regarding the building improvement project at the 1299 office. The RFP's are due September 14^th, and a recommendation will be ready for Board approval at the October meeting.

Received written approval from DCED regarding the DEP approved CFI Property Work Plan. There are two minor administrative items that must be addressed and we have been approved for a grant (not to exceed $57,000) to assist with the environmental remediation study.

• Facilities Compliance and Assurance - A meeting was held with Elizabethtown Borough officials regarding the SRBC and the Authority's consumptive use compliance modification relative to use of the Cornwall Open Pit Mine during drought conditions. The Borough has indicated they will be cooperative with our efforts towards satisfying SRBC requirements.

During August, work was initiated towards submittal of a minor permit modification regarding "operating hours" at the RRF, FFLF, and TS.

CITIZENS ADVISORY COMMITTEE

The CAC did not meet.

EXECUTIVE SESSION

After a brief recess, the Board of Directors went into Executive Session at 9:25 A.M. to receive an update from George Brubaker on the ongoing litigation and to discuss real estate matters.

OTHER BUSINESS

There was no further business to come before the Board.

ADJOURNMENT

The meeting adjourned at 10:55 A.M.

APPROVED BY THE BOARD OF DIRECTORS OF THE LANCASTER COUNTY SOLID WASTE MANAGEMENT AUTHORITY THIS 12^TH DAY OF OCTOBER, 2001.

John S. Kassees, Secretary