SWA goes on without landfill
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September 19, 2005

SWA goes on without landfill

SMETHPORT – McKean County Solid Waste Authority board members
Monday struggled with what to do and how to do it now that they no
longer have a landfill to oversee.

With the landfill and the meeting place now private property,
the board even had trouble deciding where to meet. While the
meeting had originally been set for solicitor Tony Alfieri’s
office, a later legal notice said it would be held at the 911
Center, but people who went there at the appointed time found a
note on the door saying the place had been changed again to
Alfieri’s office.

While the board dealt Monday with things from where it should
get its mail to who would keep its books, it did not address what
would happen to the approximately $5.7 million that will be left
after its debts are paid.

Board members had in their material a letter from McKean County
Commissioner Chairman John Egbert urging them to “move with all
reasonable haste” to wrap up the bill paying and other details and
deposit all funds remaining with the county.

Egbert’s letter reminded the board that “the county
commissioners are the elected fiduciary for all the assets that can
be construed as the county citizens’ assets.”

The commissioners have indicated previously that they consider
money realized from the landfill sale to be county money, and met
recently with some authority members to discuss the disposition of
those funds.

That meeting apparently revealed some concerns from authority
members over the commissioners’ ability to manage the money.

After complimenting the authority board for its hard work, the
letter tells the board the commissioners are “committed to
investing the fruits of your labors.”

It goes on the explain the money will be invested in AAA rated
bonds in a fund managed by the firm that manages the county’s
pension fund.

In another assurance the money will be not be spent
profligately, the commissioners vowed not to use the principle for
any purpose other than as collateral for any future borrowings.

The letter also points out that when the sale of Sena-Kean Manor
is finalized, the fund will approach $9 million.

The commissioners apparently intend to use interest and income
from that fund to finance necessary county improvements.

The board indicated that it was already complying with part of
the letter – wrapping up the sale and paying off its bills, but did
not commit to turning the money over. That apparently will be
discussed next week.

The board gave no answer to a reporter who asked about whether
it would now be dissolved, and when another reporter asked if there
was a clause in the sale agreement that royalty payments from
Rustick would cease if the board no longer existed, attorney
Charles Gutshall replied the clause was still there.

Asked after the meeting for a comment on whether the
commissioners had concluded a separate deal with Rustick to
continue such payments directly to the county commissioners, Cliff
Lane replied “That’s a safe assumption.”

During the meeting, the board decided to hire a person to take
notes at meetings and to do necessary typing, apparently at $10 per
hour.

They also agreed to hire Edward A. Sleeman of Kane to handle the
authority’s accounting at $28 an hour for accountant services and
$75 for the supervisor’s fees. Board members Bill Kilmer and Merle
Johnson argued against the accounting hire, saying there was no
need to spend the money and that change was unnecessary.

Since Rustick took over the landfill operation last month, board
member Bob Cummins, who is the official secretary/treasurer of the
authority, has had his construction company’s secretary handling
bill paying and bookkeeping at a rate of $17 per hour.

Some board members worried the arrangement would be seen as a
conflict of interest, and Cummins said that he had no objection to
turning the work over to an independent accountant.

Also considered at the meeting was whether the board needs to
keep up the same level of public officials’ insurance they now
have, something members decided to discuss with attorneys and their
insurance firm.

Kilmer noted the board has taken a rental storage space in Mount
Jewett and urged that the authority’s records, which are now
sitting in boxes in the Recycling Center at the landfill, be moved
there as soon as possible.

Board Chairman Mike Holtz offered to use his truck to move
them.

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