7/20/2016 UPPER CAPE REGIONAL TRANSFER STATION BOARD OF MANAGERS Minutes

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I existing volume of salt now being distributed to the Cape. Mr. Pearson projected that, based on his bids, he anticipated 67,000 tons to be transported to the Cape, which would result in 4,208 bridge crossings, as is currently the case. Mr. Pearson further indicated that there were 230,000 miles being driven off Cape and 68,000 miles being driven on Cape. Should Saltine Warrior use rail from the UCRTS, there would be no off Cape miles being driven for salt and 4,200 less truck crossings. By transporting salt direct to customers, it would increase reliability and would save truck time on the Cape. Mr. Pearson was in contact with the DEP, stating that the site was not in a water protection resource area. Mr. Pearson provided specifications of the structure he would use for the site. Mr. Pearson would need to be in contact with the Town of Sandwich about placing the structure at the site. There was discussion regarding the rail line improvements and Mr, Segura confirmed that it was currently Federally owned since it had not yet been turned over. Mr. Pearson indicated that the State would likely provide funds for improvements to the rail, based on precedence. Regarding staffing for the site, Mr. Pearson suggested that he expected 2-3 full time employees in the winter and 1 full time or 2 part time employees in the summer, depending upon usage. Mr. Pearson believed that Saltine Warrior's usage would be compatible with other uses. Additionally, Mr. Pearson responded that he would work as a subcontractor as long as certain conditions were met. Regarding value to the UCRTS, Mr. Pearson stated that the provision of a reliable supply of road salt on Cape would be of considerable value to residents. Roads would be safer and towns would be able to acquire the salt at a lower-price. Last year's bids were $5 per ton lower than competitors, suggesting potential savings of$100,0004200,000 in road salt to the Cape overall. Chairman Laurent inquired about plans should rail repairs not be completed in time. Mr. Pearson responded that his backup plan would rely on trucking from Fall River, a mixture of direct from Fall River and from the UCRTS as he would not leave the facility empty and would fill the pile at his own pace. The Chair inquired about security of the site and whether private trucks would be accessing the site. Mr. Pearson responded that smaller vehicles would be sent to his wholesalers, and a fence could be installed depending upon joint use needs. Additionally, Mr. Pearson indicated that keys to the loader and conveyer would be removed and a jersey barrier installed. Mr. Jack inquired about Mr. Pearson's cohabitation conditions and seeing no conflict with sharing the facility, but, Mr. Jack referenced the need to juggle rail cars and shared use of the building and scale. Mr. Pearson responded his intent to utilize 7 rail cars that would fit on a side track, Mr. Pearson stated that he was unsure of the other potential uses for the facility, but the previous MSW usage had a busy flow in the summer and slower in the winter, when the need would be greatest for salt. Mr. Pearson added that there were other scales in the area that could be used for the short term. Mr. Jack inquired whether his proposal was based on contracts and Mr. Pearson responded that he had 8,000 tons of commercial salt under agreement and planned to maintain an emergency salt supply in case there was a need from municipalities. Mr. Pearson added that he hoped to have more opportunities with municipalities on Cape and that Saltine Warrior had won the bid for Mashpee. Mr. Pearson stated that he anticipated being very competitive on the Cape if given a chance to enter the bidding process. Mr. Jack stated that a value of$100,000 savings Capewide would be beneficial, in addition to the local salt storage. Mr. Jack also suggested that host community status should receive host community benefit due to increased traffic and other inconveniences. Mr. Pearson responded that if the UCRTS had a 2