11/9/2011 UPPER CAPE REGIONAL TRANSFER STATION BOARD OF MANAGERS Minutes

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privatization of the Transfer Station. Mr. Angel emphasized that anyone who took over running the Transfer Station must also provide disposal capability and tipping fee to Yarmouth. Mr. Goddard inquired about Covanta assuming the debt of the Yarmouth building. Mr. Angel responded that commercial haulers paid their tipping fees to Covanta and in exchange, Covanta assumed the debt and reimbursed transportation costs. Mr. Cavossa stated that it allowed Covanta to control the commercial tipping fees at the site. Mr. Angel stated that Yarmouth and Barnstable left the trash business and instead managed the handling. It was confirmed that Yarmouth also paid the tipping fees for residential. Ms. Laurent clarified that the.contract would include the operation and the tipping fee of Yarmouth and Barnstableresidential, thereby removing that tonnage from the Cape totals. Yarmouth's original agreement extends to 2014 and the amendment to the agreement will end prior to 2014. Should Covanta take over the private control of the Transfer Station, the original agreement would end. Should another company win the bid,privatization would not begin until after 2015, unless both sides supported ending the agreement. Mr. Tilton indicated that 1/4 of the tonnage, or 20,000, would be removed leaving 55,000 tons for negotiation. Ms. Laurent noted that the total did not include the South Shore communities that had expressed an interest. There was discussion about flow control. Mr. Cavossa referenced a company, with a trans loading operation in Grafton, interested in talking further with the Board regarding usage of the railon Capeand the UCRTS. Mr, Cavossa suggested that it would a good opportunity for everyone and that the trash would remain in state. Mr. Cavossa also expressed interest in being added to the agenda to further discuss his proposal that the UCRTS be privatized. Ms. Laurent suggested that information about the interested company be forwarded for review in advance of being added to the agenda. Mr. Cavossa suggested that the industry was competitive and that he was hesitant to share information ahead of time. Mr. Tilton indicated the necessity that the full Committee reconvene because towns were beginning to make other plans. It was suggested that there may a greater focus on regional agreements, such as among Sandwich, Mashpee, Bourne and Falmouth. Mr. Cavossa referenced the Covanta deal with Brewster in the amount of$70 plus. Mr. Angel noted that Brewster was paying $45 now but would be paying $70 in 2015. Mr. Cavossa suggested that the group he referred to would be able to offer under$60 long-term tipping fee plus rail fee which would be less than what Covanta has offered. Mr. Tilton suggested the possibility of using Yarmouth as a model. Mr.Angel responded that they were using the same attorney as the SWAC group. Mr. Goddard inquired about the current employees and Mr. Angel responded that the Town Administrator preferred that the employees be retained but that it may impact 2-3 people. Ms. Laurent suggested that once the contract was awarded,that company would be able to shop its services to other outer and mid Cape towns. Mr. Angel confirmed that the Transfer Station was permitted to accept 535 tons per day. Mr. Tilton inquired about the reasons why the enterprise fund lost money. Mr. Angel responded that the economy and competition had caused loss of funding, as well as indirect charges from the town. There was also discussion about the state mandated formula that redirected funds out of the enterprise fund totaling $100,000 for the past year. 2