Minutes of the Board of Directors Meeting
October 15, 2004

The Board of Directors of the Lancaster County Solid Waste Management Authority met on Friday, October 15, 2004 at 7:30 a.m., at the Authority office, 1299 Harrisburg Pike, Lancaster, PA.

Mr. Musser called for a moment of silence. The pledge to the flag followed.

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; Jim Klecko, Covanta Lancaster; 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 September 17, 2004 meeting. Mr. Frost moved that the minutes be approved. Mr. Kassees seconded. Mr. Musser had one addition. He requested that Mr. Rosier’s name be added to the Audit Committee. Mr. Musser called a vote; the motion passed unanimously.

PUBLIC COMMENT

There was no public comment.

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 September. The Authority continues to benefit from the amount of tonnage that is being generated.

• Transfer Station - Mr. Warner reported that a few difficulties have been encountered regarding the storm water management design. Work is continuing with Gannett Fleming and Manheim Township officials on the Storm Water Compliance Plan. The project has been delayed one month.

• Penn-Mar Ethanol - PME has completed two of their conditional use hearings. The hearings will run at least through November.

• Slide Presentation - Mr. Warner gave a slide presentation which included an update on some of the programs, projects and/or events that have occurred in the last month, including:
  
  - Shredder Demonstration at Columbia Borough Compost Facility
  - Reiber House being stabilized for the move to a new location
  - RRF Tipping Floor Expansion Project
  - Construction of Mechanically Stabilized Wall at the Lanchester Landfill

• Amend Professional Services Agreement with LESCO - After discussion, motion by Mr. Kassees, second by Mr. Frost and unanimous vote, the Board approved Addendum Number 1 to the Professional Services Agreement Between Lancaster County Solid Waste Management Authority and Lancaster Enviroservices Corporation.
  

FINANCE DEPARTMENT - Ms. Olson reported on the following:

September results show that revenue was close to budget and expenses were under budget. The revenue is due to the tonnage being higher than budget. Year-to-date another $2,000,000 has been put into the restricted reserve fund. The following reports were reviewed:

• LCSWMA Preliminary Results Actual vs. Budget - All Programs for the Month ended September 30, 2004.

• LCSWMA Summary Comparison for the Nine Months ended September 30, 2004 and 2003.

• LCSWMA Accounts Receivable Report and Past Due Detail Analysis as of September 30, 2004.

• Approval of Disbursements - On motion by Ms. Hammel, second by Mr. Gordon and unanimous vote, the Summary of Disbursements for September 2004 in the total amount of $4,575,782 was unanimously approved.

Mr. Rosier asked about funding for the new Transfer Station.

Mr. Warner said that the cost of the Transfer Station would draw down the Authority’s reserves significantly, but the Authority was not contemplating a bond issue.

Mr. Musser said the Accounting Department Staff was doing an excellent job with the Accounts Receivable.

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

• Summary Tonnage Report - The total revenue tonnage for September was 50,808 tons, which was 3.2% ahead of budget. Tipping fees were also ahead of budget at $3,074,741, which was 1.79% over budget. The Resource Recovery Facility received 35,859 tons and Landfill deliveries were 14,809 tons. Total MSW for the month was slightly ahead of budget at 36,706 tons, and Residual Waste was ahead of budget by 10% at 13,962 tons. Year-to-date, total revenue tons are 441,164.

• Residual Waste - The Waste Services Agreement with Lancaster General Hospital was finalized. Work is continuing to renew Waste Services Agreements with Wilbur Chocolate, RR Donnelley and Tyson Foods.

• Recycling Program - Staff completed and submitted 43 904 Grant applications to DEP for eligible residential and commercial tonnage recycled at curbside and drop-off programs. Each year the recycling staff works with the municipalities to improve documentation of recycled tonnage. From 2000 to 2003, documented commercial tonnage recycled went from 36,000 to 65,000 tons, while residential tons recycled remained constant at 21,000 to 22,000 tons per year. Grant payments to municipalities have also climbed significantly. In 2000, they were approximately $850,000, and for 2003 we are projecting $1.2 million.

Also, a decision has been made to shelve the Old Telephone Book Recycling Drop-Off program until next year.

Mr. Warner recognized the outstanding efforts of the Authority’s recycling staff in regards to their data management system, applying for grants, and their service to municipalities in doing the same.

• Insurance - Renewal insurance has been placed, renewal binders have been received and new insurance cards issued.

• Management Development Class - Management classes began on October 5 and are being instructed by Penn State Management Development staff for five consecutive Tuesdays. Classes are being attended by both Facility and Office Managers.

COMMUNICATIONS PROGRAM - Ms. Buller reported on the following:

• A Mercury Thermometer Exchange Program is being planned in conjunction with America Recycles Day on November 15th. Because mercury thermometers are already accepted at HHW, the new variable will be when residents bring in a mercury thermometer they will get a digital one as a replacement free of charge. The reason for doing the exchange is to remove mercury from the waste stream.

• Elizabethtown Borough, West Lampeter and Mount Joy Townships’ newsletters highlighted the free community composting workshops being sponsored by the Authority. The composting workshops have proved to be very popular as a total of 240 people have attended the workshops.

OPERATIONS DEPARTMENT - Mr. Zorbaugh reported on the following:

• Administrative -The RRF Tipping Floor Expansion project is approaching completion with substantial completion expected around October 28th. Mr. Zorbaugh recognized Jim Klecko’s efforts for coordinating the construction project with Keystruct.

• On October 13th, the contractor doing the foundation work for the Reiber House was on-site. The house should be moved within the next two to three weeks.

• Mr. Wood asked about materials used in the foundation.

• Mr. Zorbaugh said the contractor would use rock from the site.

• Facility Operations - The wood shredder rental program to municipalities continues with Columbia Borough and Manheim Township combining for a total of 24 hours during September.

• With the scheduled outages at the RRF, refuse is being used at the FFLF for the required select waste layer in subcell 5F.

• Safety - On September 7th, site employees achieved a milestone of over 300 consecutive days worked without a lost-time accident.
  

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

• Site Operations - Electric revenues for September were $1,048,889, which is $43,889 over budget, since the boilers operated with little downtime.
  
  Unit #1 was taken down to repair grate bars, and Unit #2 was off-line for an ID fan bearing repair and to remove some flyash build-up in the secondary superheater. Unit #3 continues to run well since April at 100%.
  
  The ferrous recovery system removed only 580 tons of metal from the ash for recycling. The leaf springs on the vibrating finger screen failed leading to 34 hours of downtime.
  
  Mr. Klecko reported on the leaf spring failures.
  
  Mr. Warner explained the importance of the ferrous recovery system and the use of ash as daily cover at the landfill.

• Regulatory Activities - Randy Weiss of DEP was on site for an inspection in September. His report contained no operational violations.

• Other Activities
  
  A considerable amount of time was spent in determining Covanta’s Service Fee for 2005. The fee is calculated through the use of three published economic indices. One of the indices, published annually by the Bureau of Labor Statistics, is no longer available. It was proposed that a suitable Labor Index be substituted from the list of industries in the new index.
  
  Craig Davis, RRF Auditor, was on site last week to perform work related to the 2004 audit. He also prepared a letter that addressed the recommendations that he had in the 2003 audit report as requested by the Board.

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

• Capital Projects

• Transfer Station - The RFQ process has been delayed given the amount of effort required on the project. We have received four (4) responses from local General Contractors. A considerable amount of time has been spent on the assembly of the bid documents. With regard to permits and approvals, Manheim Township has a requirement, based on Act 167, which requires specific watersheds to develop storm water management plans. This has had a large impact on the project.

• Phase 3 Capping Project - The project achieved Substantial Completion on September 30th, as required by the contract. ARM has begun to assemble the Form 37 “Construction Certification” documents for submittal to DEP.

• CFI Project - We decommissioned four (4) wells that had originally been required for site characterization efforts. These locations are no longer needed for monitoring.

• Technical Support
  
  We hope to advertise and distribute our Request for Proposals regarding Laboratory Analytical and Field Services required by the Authority by the end of October.

• Facilities Compliance and Assurance
  
  We did receive the FFLF NPDES permit in draft form from the Department.
  
  Work has started on the Creswell/Frey Farm Landfill Title V permit which is due by the end of October.
  
  We have received DEP’s acknowledgment for the transfer of the permit from the former Lancaster Malleable site into the Authority’s name.

CITIZENS ADVISORY COMMITTEE

Mr. Warner said the next CAC meeting was planned for October 27, 2004 at 1:00 p.m.

OTHER BUSINESS

After a 15 minute recess, the Board came back in session at 9:00 a.m.

Staff Presentation of Preliminary 2005 Operating and Capital Budget - Staff gave a presentation to the Board of the Preliminary 2005 Operating and Capital Budget.

ADJOURNMENT

On motion by Mr. Frost, second by Ms. Hammel and unanimous vote, the Board meeting adjourned at 10:25 a.m.

APPROVED BY THE BOARD OF DIRECTORS OF THE LANCASTER COUNTY SOLID WASTE MANAGEMENT AUTHORITY THIS 12TH DAY OF NOVEMBER 2004.

Barbara B. Hammel, Secretary