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APPLICATION OF WASTE BEFORE THE STATE OFFICE MANAGEMENT OF TEXAS, INC. FOR A MUNICIPAL SOLID WASTE OF PERMIT AMENDMENT; PERMIT NO. MSW-D ADMINISTRATIVE HEARINGS TESTIMONY OF JAMES SMITH ON BEHALF OF APPLICANT WASTE MANAGEMENT OF TEXAS, INC. REGARDING OPERATING HOURS Page of

TABLE OF CONTENTS I. BACKGROUND... II. WASTE ACCEPTANCE AT THE ACRD FACILITY... III. IV. IMPACT OF LIMITING THE ACRD FACILITY S WASTE ACCEPTANCE HOURS TO WEEKDAYS ONLY FROM :00 A.M. TO :00 P.M... PRE- AND POST-WASTE ACCEPTANCE OPERATIONS AT THE ACRD FACILITY...0

APPLICATION OF WASTE BEFORE THE STATE OFFICE MANAGEMENT OF TEXAS, INC. FOR A MUNICIPAL SOLID WASTE OF PERMIT AMENDMENT; PERMIT NO. MSW-D ADMINISTRATIVE HEARINGS PREFILED TESTIMONY OF JAMES SMITH ON BEHALF OF APPLICANT WASTE MANAGEMENT OF TEXAS, INC. REGARDING OPERATING HOURS 0 0 I. BACKGROUND Q: PLEASE STATE YOUR NAME AND BUSINESS ADDRESS. A: My name is James Smith. My business address is 00 Giles Road, Austin, Texas. Q: WHO IS YOUR EMPLOYER? A: Waste Management of Texas, Inc. ( WMTX ). Q: WHAT IS YOUR CURRENT POSITION WITH WMTX? A: I am the Senior District Landfill Manager for the Austin Community Recycling and Disposal Facility ( ACRD Facility ), Williamson County Recycling and Disposal Facility ( Williamson County RDF ), Lacy Lakeview Landfill, and Temple Landfill. In that role, I manage operations at each of the four landfills. Q: WHERE IS YOUR OFFICE LOCATED? A: My office is located at the ACRD Facility. Q: HOW LONG HAVE YOU HELD THE POSITION OF SENIOR LANDFILL DISTRICT MANAGER? A: I have held the position of Senior Landfill District Manager since June 00.

0 0 0 Q: PRIOR TO YOUR EMPLOYMENT WITH WMTX IN 00, WHERE DID YOU WORK? A: I worked for Browning Ferris Industries as a landfill manager for about nine years. II. WASTE ACCEPTANCE AT THE ACRD FACILITY Q: MR. SMITH, IN YOUR CURRENT ROLE AS SENIOR DISTRICT LANDFILL MANAGER, ARE YOU FAMILIAR WITH THE OPERATING HOURS OF THE ACRD FACILITY? A: Yes. It is my responsibility to ensure that the ACRD Facility is operated within its authorized hours of operation. Q: ARE YOU FAMILIAR WITH THE TYPES OF CUSTOMERS THAT DISPOSE OF WASTE AT THE ACRD FACILITY? A: Yes. The ACRD Facility receives waste from various commercial waste haulers, including Longhorn Hauling, which is WMTX s hauling company. From its commercial waste hauling customers, the ACRD Facility receives waste collected from businesses, residences, municipalities, and other public and private establishments and institutions, such as hospitals and schools. The ACRD Facility also receives waste from individual members of the public and small businesses that may haul their own waste for disposal. Q: DOES THE ACRD FACILITY KEEP TRACK OF THE WASTE LOADS IT ACCEPTS FOR DISPOSAL AT THE FACILITY? A: Yes. WMTX uses a software program called Fast Lane that, along with other information, tracks the time and date of arrival of each waste load and the quantity of waste accepted for disposal from each vehicle that enters the facility. Every load of waste that is accepted for disposal at the ACRD Facility is captured and recorded in the Fast Lane database. Q: ARE YOU FAMILIAR WITH WMTX S USE OF THE FAST LANE PROGRAM? Page of

0 0 0 A: Yes, the Fast Lane program has been in use at the ACRD Facility since approximately 00. Additionally, the Williamson County RDF, Lacy Lakeview Landfill, and Temple Landfill use the program, as do other WMTX facilities in Texas. Q: IN THE COURSE AND SCOPE OF YOUR EMPLOYMENT BY WMTX, DO YOU ROUTINELY USE THE DATA RECORDED BY THE FAST LANE PROGRAM? A: Yes. I review various reports generated from the Fast Lane system for each of the four landfills in my district on a regular basis. Q: WHY DO YOU REVIEW THE DATA RECORDED BY THE FAST LANE PROGRAM ON A REGULAR BASIS? A: I am looking for customer trends in waste receipts, such as in quantity and frequency, and I am also reviewing the level of staff and equipment needs against the waste volumes being received at each landfill. Q: HOW, IF AT ALL, IS THE INFORMATION THAT IS RECORDED BY THE FAST LANE PROGRAM MAINTAINED BY WMTX? A: All of the Fast Lane data is maintained electronically by WMTX, in a database for each facility that uses the program. Q: HOW DO YOU GO ABOUT REVIEWING THE FAST LANE DATA? A: I have access to the database, but I also receive reports on a weekly and quarterly basis with the information I need. Q: MR. SMITH, PLEASE REFER TO THE DOCUMENT THAT HAS BEEN MARKED AS EXHIBIT APP-0. CAN YOU IDENTIFY THIS EXHIBIT? A: Yes. Exhibit APP-0 is a Fast Lane report for the waste loads that were received at the ACRD Facility between August, 00 and October, 00. Q: DID YOU CREATE THIS REPORT? Page of

0 0 0 A: No. Steve Johnson, a WMTX Financial Analyst, created this report at the request of our in-house legal counsel. Q: DO YOU ROUTINELY RELY UPON WMTX STAFF TO CREATE THE FAST LANE REPORTS THAT YOU REVIEW ON A WEEKLY AND QUARTERLY BASIS IN THE COURSE AND SCOPE OF YOUR EMPLOYMENT BY WMTX? A: Yes, I do. Q: DOES THE REPORT MARKED EXHIBIT APP-0 CONTAIN THE TYPE OF DATA FROM FAST LANE THAT YOU TYPICALLY REVIEW ON A WEEKLY OR QUARTERLY BASIS IN THE COURSE AND SCOPE OF YOUR EMPLOYMENT BY WMTX? A: Yes. APPLICANT OFFERS EXHIBIT APP-0. Q: CAN YOU PLEASE SUMMARIZE THE INFORMATION PROVIDED IN EXHIBIT APP-0 AS IT PERTAINS TO WASTE ACCEPTANCE AT THE ACRD FACILITY OUTSIDE OF THE WEEKDAY HOURS OF :00 A.M. TO :00 P.M.? A: Approximately.% of the waste loads that were received at the ACRD Facility between August, 00 and October, 00, were received between the hours of :00 a.m. and :00 a.m. Monday through Saturday. Additionally, during this same period,.% of the waste loads accepted by the ACRD Facility were accepted on Saturdays. Q: MR. SMITH, PLEASE REFER TO THE DOCUMENT THAT HAS BEEN MARKED AS EXHIBIT APP-0. CAN YOU IDENTIFY THIS EXHIBIT? A: Yes. Exhibit APP-0 is another Fast Lane report for the waste loads that were received at the ACRD Facility between August, 00 and October, 00. The report in Exhibit APP-0 details the tonnage of each load received during this period. Page of

0 0 Q: DID YOU CREATE THIS REPORT? A: No. Here again, Steve Johnson created this report at the request of our in-house legal counsel. Q: DOES THE REPORT MARKED EXHIBIT APP-0 CONTAIN THE TYPE OF DATA FROM FAST LANE THAT YOU TYPICALLY REVIEW ON A WEEKLY OR QUARTERLY BASIS IN THE COURSE AND SCOPE OF YOUR EMPLOYMENT BY WMTX? A: Yes. APPLICANT OFFERS EXHIBIT APP-0. Q: CAN YOU PLEASE SUMMARIZE THE INFORMATION PROVIDED IN EXHIBIT APP-0 AS IT PERTAINS TO WASTE ACCEPTANCE AT THE ACRD FACILITY OUTSIDE OF THE WEEKDAY HOURS OF :00 A.M. TO :00 P.M.? A: By weight, approximately.% of the waste received at the ACRD Facility between August, 00 and October, 00, was received between the hours of :00 a.m. and :00 a.m. Monday through Saturday. Additionally, during this same period and in terms of tonnage,.% of the waste accepted by the ACRD Facility was accepted on Saturdays. Q: ARE YOU FAMILIAR WITH THE KINDS OF WASTE LOADS THAT ARE BEING RECEIVED AT THE ACRD FACILITY BETWEEN A.M. AND A.M.? A: Yes. The vast majority of the waste loads received at the ACRD Facility before :00 a.m. are delivered by commercial waste haulers. Most of this waste is waste that has been collected from businesses, municipalities, and other public and private establishments and institutions, such as hospitals and schools. Page of

0 0 Q: CAN YOU EXPLAIN WHY ANY WASTE LOADS ARE RECEIVED BEFORE A.M.? A: Many commercial contracts for waste collection require that the waste be collected outside normal business hours, before employees or customers begin arriving at the establishments, in order to avoid traffic congestion and disruptions and for safety reasons. The first loads of waste that are received at the ACRD Facility each day are typically collected from the downtown Austin business district and from other customers that require waste service in the early morning hours, typically before :00 a.m. The commercial haulers who collect this waste and who are customers of the ACRD Facility require that the landfill be open to accept this waste, which typically arrives at the facility prior to :00 a.m. Q: CAN YOU IDENTIFY ANY ACRD FACILITY CUSTOMERS WHO SPECIFICALLY REQUIRE ACCESS TO THE ACRD FACILITY BEFORE A.M.? A: I can identify at least two customers who have specifically requested access to the ACRD Facility before :00 a.m. One is Longhorn Hauling, which, as I previously mentioned, is owned by WMTX and services WMTX s customers. Another is IESI, which is another waste hauler that also collects MSW from commercial and residential customers. Aside from Longhorn Hauling, IESI is the ACRD Facility s biggest hauling customer. Q: ARE YOU FAMILIAR WITH THE TYPES OF CUSTOMERS THAT DELIVER WASTE TO THE ACRD FACILITY ON SATURDAYS? A: Yes. Many of the waste loads received on Saturday are delivered by members of the public. More members of the public frequent the landfill on Saturdays than any other day of the week. The rest of our Saturday customers are largely commercial haulers. Here again, the first loads of waste that are received at the ACRD Facility on a Saturday are typically collected from the downtown Austin business district and from other customers that require waste service in the early morning hours. Early Saturday morning, our commercial hauling customers collect the wastes generated the Friday before by Page of

0 0 restaurants, bars, and other area businesses and haul it to the ACRD Facility for disposal, typically before :00 a.m. Q: AFTER REVIEWING EXHIBITS APP-0 AND 0, DO YOU SEE ANY DISCERNIBLE TRENDS IN THE WASTE ACCEPTANCE DATA FOR THE ACRD FACILITY? A: I have noticed this year that waste receipts are down across the board compared to previous years. Q: MR. SMITH, TO WHAT, IF ANYTHING, DO YOU ATTRIBUTE THIS DECLINE IN WASTE RECEIPTS? A: The economic downturn has resulted in less waste being generated and disposed of at landfills generally, including the ACRD Facility. The slow economy has resulted in reduced home construction, decreased purchasing of consumer goods (and thus, less packaging being thrown away), and fewer meals eaten at restaurants. Once the economy recovers, waste receipts should also increase again in terms of frequency and tonnage. III. IMPACT OF LIMITING THE ACRD FACILITY S WASTE ACCEPTANCE HOURS TO WEEKDAYS ONLY FROM :00 A.M. TO :00 P.M. Q: MR. SMITH, IF THE AUTHORIZED WASTE ACCEPTANCE HOURS OF THE ACRD FACILITY ARE LIMITED TO :00 A.M. TO :00 P.M. ON WEEKDAYS ONLY, WHAT, IF ANY, IMPACT WILL THAT HAVE ON THE FACILITY? A: Limiting the ACRD Facility s waste acceptance hours to :00 a.m. to :00 p.m. on weekdays only would have a significant, negative impact on the operation of the facility. Q: WHY WOULD SUCH A LIMITATION ON THE FACILITY S WASTE ACCEPTANCE HOURS SIGNIFICANTLY AND NEGATIVELY IMPACT THE FACILITY? Page of

0 0 0 A: First, safety is a critical issue in the operation of the facility. As shown in Exhibit APP- 0, from August, 00 through October, 00, some, vehicles disposed of waste at the facility prior to :00 a.m. Additionally, during this same period,,0 vehicles disposed of waste at the facility on Saturdays. If the facility had to try and dispose of all these loads within the hours of :00 a.m. to :00 p.m. on weekdays, we would be forcing an increase in the amount of traffic to and from the landfill and within the facility during some of the busiest traffic hours of the day. Increasing the number of large trash trucks moving within the facility during compressed hours negatively affects the safety of not only the landfill employees, but also the drivers of all vehicles within the facility. Because commercial drivers have to service their customers within the window of time required by the customer, decreasing the hours of access to the facility may cause those drivers to rush in order to meet their customers needs. As shown in Exhibit APP- 0, the landfill currently receives over 0% of its daily waste loads between the hours of :00 a.m. and noon. Precluding the landfill from receiving waste prior to :00 a.m. would cut this 0-hour period in half, leaving only hours for the facility to handle approximately 0% of its daily customers. Increasing the truck traffic around and within the facility from :00 a.m. to noon coupled with drivers who are rushed to meet customer pick-up times creates unnecessary safety risks and concerns for the employees of the facility, truck drivers, and the general public. Second, as I previously discussed, the landfill s two biggest hauling customers Longhorn Hauling and IESI require the landfill to be open prior to :00 a.m. so that these commercial haulers can meet their customers demands for early morning waste service to efficiently and safely collect waste from areas that become more congested during normal business hours. Precluding the ACRD Facility from receiving waste prior to :00 a.m. could very well result in the facility losing customers or may otherwise result in a reduction in the facility s waste acceptance volumes. IV. PRE- AND POST-WASTE ACCEPTANCE OPERATIONS AT THE ACRD FACILITY Page 0 of

0 0 Q: MR. SMITH, CAN YOU DESCRIBE GENERALLY THE KINDS OF ACTIVITIES THAT OCCUR AT A LANDFILL? A: Yes. For certain periods of the day, the landfill accepts MSW for disposal from both public and private entities. After a waste load is authorized for disposal and unloaded, the waste is spread and compacted. And at least once every hours, the compacted waste is covered with earthen material and compacted again. Because the compacting and daily cover operations require large machinery like compactors and bulldozers, these activities are limited to times when it is safe to perform such functions. Q: IS THE LANDFILL READY TO ACCEPT WASTE AS SOON AS IT OPENS? A: No. Before any waste can be accepted for disposal, the day s working face must first be prepared. These preparations require the use of heavy equipment. For safety reasons and to keep disposal operations running as efficiently as possible, these pre-disposal preparations are typically conducted before any customers enter the site. Q: DOES THE LANDFILL CLOSE IMMEDIATELY ONCE THE LAST TRUCK HAS LEFT? A: No. The staff must wait until the last truck has left in order to apply daily cover and compact the waste, both of which also require the use of heavy machinery. Here again, for safety reasons and to keep disposal operations running as efficiently as possible, these post-disposal preparations are typically conducted after all customers have left the site. Q: THANK YOU MR. SMITH. I HAVE NO FURTHER QUESTIONS FOR YOU AT THIS TIME. US 0v. Page of