Overview 2005 - 2010• Operation and Management Lease Agreement started

September 19, 2005.

• County has received approximately $9.5 M in revenue:– $7.4 M in lease payments– $1.6 M in advance payments– $250 K for community projects– $125 K for the Academic and Workforce

Development Center– $40 K in engineering – $110 K for the Scholarship Fund

Agencies supported with Community Projects funds include: the SPCA, Friends of the Catherine Trail, Wings of Eagles, Arts of the Southern Tier, YMCA, Tanglewood Nature Center, Junior Achievement, Chemung ARC as well as various municipalities.

• County has received approximately $9.4 M to cover expenses:– $5.11 M in payroll reimbursement– $4.2 M in other expense reimbursement– County has avoided millions in landfill expense

related to cell development, equipment purchases and consulting/engineering expenses.

• County debt related to solid waste operations has almost been eliminated. $839,301 in 2005

• Solid waste tax levy was eliminated. $1,257,000 in 2005.

• Casella has purchased several properties around the landfill under the property protection program and have maintained and preserved these properties.

• Improved and built positive relationship with DEC. No violations since agreement and weekly site visit reports that are vastly improved since inception of the management lease.

• Management lease provided for a host community agreement with the Town of Chemung where the town receives $400,000 per year. Town also received $489,000 to retire the debt of the Chemung Fire District. There are various other compensation considerations aligned with the County/Casella management lease.

County entered negotiations with two fundamental principles that would remain unchanged:

– Current boundaries or footprint of the landfill would not be changed.

– Current tonnage levels outlined in the OML would not be increased.

Negotiation Issues

• Future Project Development

• Success Payment/Permitting

• Housekeeping Matters

Future Project Development

• Sewer Line - Section 6.2 $2.8 M• Water Line - Section 6.3 $2.3 M• Hydroponics Greenhouse - Section 6.4 $2.5 M• Enhanced Construction/Demolition

Recycling Facility - Section 6.5 $1.631 M

• Environmental Stewardship Education Center – Section 6.6 $.5 M

• Energy Projects – Section 7.2 a) & b)-Landfill gas transmission line

$1.4 M-Gas to Energy Facility $2.5

M

• Career Development Center – Section 7.11

$.5 M

Future Projects That Will Remain Unchanged

• Career Development Center: Will continue to receive $25,000 per year.

Future Projects That Will Be Modified

• Enhanced C&D Recycling: Lake Street facility will not become enhanced facility. Upgrades to current facility exceed $1.6 million. Additional information will be covered in housekeeping.

• Environmental Stewardship Education Center: Casella purchased Hoffman House near landfill for $308,000 to use as center. Balance of funds will be contributed to Friends of the Chemung River Watershed - $20,000 per year.

• Landfill Gas to Energy Project: Plant will be located at landfill and will be constructed within two years after issuance of permit.

Future Projects That Will Be Eliminated

• Sewer/Water: Alternate infrastructure source

• Landfill Gas Transmission Line: Relocation of gas to energy facility makes line unnecessary.

• Hydroponics Greenhouse

Cash Payments to County for Future Project

Elimination and Advance Payment Forgiveness

Total payment - $11.1 million

• First payment of $5 M to the County by April 30, 2010

• Second payment of $1 M to the County on or before May 15, 2011

• Third payment of $1 M to the County on or before May 15, 2012

• Fourth payment of $1 M to the County on or before May 15, 2013

• Payment Advances: Section 7.1 d)The County exercised it rights pursuant to this section to receive an advance payment of $400,000 in calendar year 2006 and $1.2 M in calendar year 2007. Upon execution of the modified OML such advance shall be considered to be satisfied.

• Community Development Payment: Upon issuance of permit the County shall receive $100,000 a year for a 15 year period for a total payment of $1.5 million.

Permit Success Payments Modifications

• Section 4.1: County will fully cooperate with NEWSNY efforts to obtain an operating permit allowing an annual capacity of 417,000 tons effectively merging the OML provision that contemplated this as a two-step process. However, this provision shall not impact Section 7.1 b) of the OML.

• The parties further agree to modify Section 7.1 c) to provide for the following:– During the calendar year, of the issuance of the

operating permit for 417,000 tons, NEWSNY shall pay the County an additional $630,000 (it’s contemplated that such issuance shall occur in calendar year 2013, no later that 2014).

– During the second year, after issuance of such permit, NEWSNY shall pay the County no less than an additional $900,000 or up to $1,260,000 based on a $9.00 per ton calculating for every ton over 180,000 tons.

– During the third year, after issuance of such permit, NEWSNY shall pay the County no less than the previous years additional payment or up to $2,133,000 based on a $9.00 per ton calculation for every ton over 180,000 tons.

– Parties agree to freeze for this 3 year period the tipping fee rate outlined in Section 8.1 a) of the OML.

– During the fourth year, after issuance of such permit, NEWSNY agrees to payment consistent with Section 7.1 c) of the OML.

– It is agreed that these payments shall not impact any other payments in the OML except as otherwise agreed to by the parties.

Housekeeping Matters• Development of Advanced Recycling Program:

Campaign roll out that will have at least a 20% recycling goal. Casella will retain County current share of recycling royalty and seek NYSERDA grants to implement.

• Parties agree to meet to discuss Drop-off Station Operation hours consistent with usage. The County reserves the right to maintain current hours of operation at its sole discretion.

• Parties agree to incorporate Advisory Committee payments into administrative payments.

• Modifications of OML must be completed and executed by April 30, 2010.