DAUPHIN COUNTY BOARD OF COMMISSIONERS
LEGISLATIVE MEETING
MAY 14, 2008 10:00 A.M.

MEMBERS PRESENT

Jeff Haste, Chairman
Dominic D. DiFrancesco, II, Vice Chairman
George P. Hartwick, III, Secretary

STAFF PRESENT

Chad Saylor, Chief Clerk; Marie E. Rebuck, Controller; Janis Creason, Treasurer; J. Scott Burford, Deputy Chief Clerk; Bruce Foreman, Esq., Solicitor; Randy Baratucci, Director of Purchasing; Diane McNaughton, Commissioners' Office; Amy Richards, Commissioners' Office; Mike Yohe, Director of Budget & Finance; Tom Guenther, Director of IT; Kay Lengle, Personnel; Steve Chiavetta, Director of Registration & Elections; Mike Pries, Director of Safety & Security; Jena Wolgemuth, Commissioners' Office; Brenda Hoffer, Commissioners' Office; Kacey Truax, Commissioners' Office and Richie-Ann Martz, Assistant Chief Clerk

GUESTS PRESENT

Garry Lenton, Gary Luderitz, Mark Stewart, Esq., Lloyd Umberger, George Groves, Justin Warren, Jim Szymborski, Mike Pilsitz, Victor Rivera, Stewart Young, Jeremiah Young, Andre Campbell, Lloyd Hill, Ryan Hill, Shacur Haigh, D. Beekel, Josh Proctor, Lance Chisholm, Chris Garman, Jordan Smith, Jordan Hill, William Rozman and Mike Attivo

MINUTES

CALL TO ORDER

Mr. Haste, Chairman of the Board, called the meeting to order at 10:00 a.m.

MOMENT OF SILENCE

Everyone observed a moment of silence.

PLEDGE OF ALLEGIANCE

Everyone stood for the Pledge of Allegiance.

APPROVAL OF MINUTES

It was moved by Mr. DiFrancesco and seconded by Mr. Hartwick that the Board approve the April 16, 2008 Legislative Meeting Minutes, the April 23, 2008 Workshop Meeting Minutes and the April 30, 2008 Legislative Meeting Minutes; motion carried.

It was moved by Mr. Hartwick and seconded by Ms. Rebuck that the Board approve the April 16, 2008 Salary Board Meeting Minutes, the April 23, 2008 Salary Board Meeting Minutes and the April 30, 2008 Salary Board Meeting Minutes; motion carried.

EXECUTIVE SESSIONS HELD BETWEEN MEETINGS

Mr. Saylor: We met once in Executive Session. It was on the 30th of April to discuss matters of real estate and some labor issues.

PUBLIC PARTICIPATION

Mr. Haste: We are at the point in time in the meeting for public participation. Is there anyone in the audience that would like to address the Board at this time? (There was none.)

DEPARTMENT DIRECTORS/GUESTS

1. Commissioners
   1. Proclamation - Steel-High Boys Basketball Team - State Champions

Mr. Hartwick: It gives me great pride and pleasure once again to have a group of guys in front of me that are outstanding young men, outstanding basketball players and from what I'm understanding as well you are very good in the classroom. I want to make sure that we acknowledge that as well, because I don't want to hear any of you, at the end of this, after all of your accomplishments talking about "coulda, woulda, shoulda." I know this is getting to be old hat for some of you sitting up here and now after a football state championship you were successful in bringing a basketball state championship to the little town with the big heart. I want to say thank you for the thrills this year and the excitement. I can beat my chest again because I am so proud. I want to say congratulations. This has been the year for state championships in this region. We had the Central Dauphin Girls, swimming titles, Central Dauphin wrestling, Steel-High football and basketball and that kind of recognition to this region is things that we are carrying a certain amount of pride around as well. We want to stay focused that it is not just about and I know you guys are hearing this everyday and I'm going to include myself it is not just about what you do on the basketball court. You have so many choices on what you are going to do, how you are going to play it out, what are you going to do now since you have these state championships? Are you going to repeat next year? Are you going to stay out of trouble? Are you going to make sure that you move on to the next level and use this as an opportunity to get a college career? And whether you like it or not, because of your ability and your personality, we look up to you all the time. I want to say thank you again. We have a Proclamation today. I just wanted to let you know that with this comes a great deal of responsibility. Thank you very much for the senior leadership. It was with that kind of leadership that helped to make a difference when things got tough. You are looked up to by the community and the young kids who have watched this team make its way, through some ups and downs, to win the state championship.

(Mr. Hartwick read the following Proclamation.)

Office of County Commissioner
Dauphin County, Pennsylvania

Proclamation

We, the Dauphin County Board of Commissioners, are truly thrilled to once again acknowledge and congratulate Steelton-Highspire High School and its 2007-08 basketball team on an extraordinary season that produced a PIAA Class AAA state championship, District III Runner-up and Mid-Penn championship, and for an extensive history of athletic prowess and prominence;

Whereas, led by Head Coach Mike Pilsitz, the Rollers team played with great heart and determination, overcoming a loss in the District III title game to finish the season at 28-6; guided by the renowned Jordan and Lloyd "Big Cat" Hill, senior guard Lance Chisholm, Jeff Davis and Josh Proctor, Steel-High faced off against Central Pennsylvania rival Susquehanna Township in the PIAA's Class AAA title game, winning a decisive 65-52 victory, the Rollers' first state title under third-year coach Mike Pilsitz;

Whereas, considering the incredible work ethic, bright spirit and determination of these talented young men, the seeds of a state championship were evident and carried Steel-High High School to its fifth state championship;

Whereas, the 2007-08 Rollers team not only excelled on the court but also demonstrated outstanding academic performance, with an overall 3.01 grade point average for the team; these exceptional young men exemplified well-rounded student athletes and are truly winners in every sense of the word;

Therefore, we join the 253,300 residents of Dauphin County in honoring Steel-High's much-celebrated 2007-08 Rollers basketball team for the unbelievable teamwork and sharp shooting that dominated the courts last season in addition to the commendable academic achievements of its players; we wish them continued success on and off the court, at Steel-High and beyond; as enthusiastic fans, we sincerely thank the Steel-High basketball team for providing us with thrilling victories and enduring hope; and, in honor of their PIAA Class AAA state championship and remarkable accomplishments, both on and off the court, we do hereby proudly declare May 14, 2008 to be "Rollers Basketball Day" in Dauphin County.

(Applause was given.)

Mr. DiFrancesco: Did everybody on the team play for both teams?

It was mentioned that nine of them played for both teams.

Mr. DiFrancesco: For some of them this will be a repeat, because you heard me say it once before. First of all let me say that we are extremely proud of you and what you have accomplished. As much as I am proud of you for bringing a state championship home, I am more proud of you for an overall grade average of 3.01, because that is what matters. You guys have proven to your community, families and to all of us that you have the heart to win. There is no question about it. You have the stamina to win. You are willing to do what it takes to win. But success in life is going to come in that classroom. You will be able to look back on that trophy and see glory days, but the future is in the classroom. The fact that you are carrying that high of an average in the classroom is what makes me proud. That's what tells me you also have the heart, the brains and the intelligence to move forward. As Commissioner Hartwick said, there are a lot of young people looking up to you right now. With success comes great responsibility. You guys have proven to be very successful. You have brought life to the town, the community and you have inspired a lot of young people. Whether you have chosen that as part of your victory it comes along with it. I'm telling you right now to bring two state titles home is absolutely amazing. To overcome what you overcame in the football season and to do what you did in the basketball season is absolutely amazing. Again, there are much larger school districts out there that may never see a state championship. You brought two home in one year. You definitely deserve our pride, adoration and a pat on the back. But, don't stop there, because again what really matters is ten years from now when you look back and look at this team from 2008, where are you guys going to be? What are you going to be doing? Keep that success rolling! All those young people in the community are looking up to you right now. Keep that intelligence moving, keep that homework in the classroom rolling and I would be thrilled to death to be sitting here next year giving you the same boring speech over again, because you brought home yet another state championship. Congratulations guys! We are proud of you!

Mr. Haste: I also would like to commend you. Big Cat, I have to tell you that watching you play was pretty inspirational. I think most of you know all three of us were there to watch that game. It was actually pretty amazing for us as Dauphin County Commissioners to have three, in a matter of two games, potentially state qualifying teams there, CD Girls, Susquehanna team and you guys. Out of one county in the Commonwealth of Pennsylvania, out of those three final games to have three teams playing is pretty amazing. We talk often about the youth sports in this area and I think you guys exemplify what we talk about; the dedication and commitment. We talk about how good our youth athletes are in Central Pennsylvania and hopefully you guys will continue to move forward and go to college. Hopefully we'll see a couple of you guys playing on Sunday, whether it be in football or basketball. You make us all proud.

I also have to say and some of you may know this, but I suspect that most of you don't. I happen to be a coach of the District 3 champion and the state runner-up school. I coach at Susquehanna Township. We couldn't really lose in that process and because of that your Commissioner, Commissioner Hartwick, and I had a little rivalry going on. I was afraid that he was going to show up with a picture. Most of you don't know this but the next meeting I sat here with a Rollers jersey and hat on for the entire meeting.

Mr. Hartwick: It was an old school wino hat that my brother gave me.

Mr. Haste: I just have to be careful, because George pulls that out every so often to have power of persuasion over me. I am very proud of you guys as well and as Nick had said for you guys to have two state championships hopefully it will sink in, I don't know if it will until you are talking to your kids and grandkids, but that is absolutely amazing. Having been someone that played sports in high school as well, to get one state champion is amazing, but to get two is unbelievable. My hat is off to you.

Mr. Hartwick: With this young team, we are expecting two more next year.

(Pictures were taken and applause was given.)

1. Gary Luderitz of Penn National Gaming
   1. Presentation on the Hollywood Casino

Mr. Luderitz: My name is Gary Luderitz. I'm the General Manager of Hollywood Casino at Penn National Race Course. I just wanted to thank you first for inviting me here today. I have a set of prepared remarks that if you indulge me I will read. It is about four or five pages. Any questions you might have following that I will be happy to answer.

I would like to begin by providing a bit of background about Penn National Gaming and our exciting new facility here in Central Pennsylvania. As some of you may know, Penn National Gaming is a proud Pennsylvania company, which began in 1972 as the operator of one of the Commonwealth's original thoroughbred racing licenses at our namesake track in Grantville. Our company went public in 1994 on the strength of that single racetrack alone. Since that time, Penn National has grown into what is today one of the largest, most broadly diversified gaming and pari-mutuel wagering companies in the nation. Operating in 15 jurisdictions around the country, Penn National offers a distinct brand of gaming entertainment, ranging from resort casinos to riverboat gaming, to thoroughbred, harness and greyhound racing.

As you might imagine, given our corporate headquarters is a short drive away in Wyomissing, the opening of Hollywood Casino at Penn National Race Course has been one of the most anticipated and exciting new development projects in our company's history. Hollywood Casino proudly serves at the centerpiece of our company's portfolio of gaming properties. We invested approximately $310 million to bring this state-of-the-art integrated racing and gaming facility to central Pennsylvania. The finished product features over 2,000 slot machines, a five story garage, an innovative multi-media Hollywood design theme and bars and restaurants ranging from casual dining to higher-end fare. A 350 seat buffet and an upscale steak house are expected to open during the third and fourth quarters of this year to give patrons even more dining options. On the top floor of the five-story casino complex are banquet rooms with panoramic views of the racetrack and of course the Appalachians in the background, which features exciting year-round thoroughbred racing and simulcast wagering.

I should note that excluding slot machines, 62.5% of our overall construction budget went to Pennsylvania-based companies. Nearly 11% went to certified Minority Business Enterprises and Women Business Enterprise companies, and 70% of direct construction went to union affiliated contractors. I should also note that our facility was built with protecting the environment in mind. We invested in a state-of-the-art water re-use system that utilizes waste water at the facility for irrigation of the racetrack and landscaping. That waste water treatment is, I believe, the first such facility that was approved. We are very proud of that.

Since opening, Hollywood Casino at Penn National Race Course has quickly emerged as one of the premier entertainment attractions in Central Pennsylvania, with strong and growing visitation. We are very pleased with the facility's financial performance to date, with win-per-day-per-device averaging approximately $262 since opening in February. In the first full year of operation the facility is expected to yield approximately $180 million or more in gaming revenues. Through this slot revenue, we have been able to help bolster the horse racing industry and to provide over $3 million toward purses for live racing year-to-date. The facility offers the latest games from major equipment suppliers and has capacity for 1,000 additional gaming devices. In fact, we are hoping to add up to 300 additional slots at the facility in the near-term.

The long-term Master Plan for Hollywood Casino at Penn National Race Course, which is located on 600 acres, includes a hotel and conference center, retail outlets, an entertainment center, an additional parking deck, and additional casino space, which would allow the facility at full capacity to accommodate up to 5,000 slot machines, generating gaming revenues in excess of $330 million.

Like any business, our most important asset is our people. I'm proud to say our facility employs nearly 1,000 full-time employees, most of them hired within the last six months, with benefits and offers training and upward mobility programs. To provide for the safety of our patrons, we employ nearly 100 fully trained security officers, some with EMT training. Our security team provides constant surveillance of the property and we have mobile units patrolling the parking lot and throughout the facility. We also have a medical doctor and nurse on site during racing hours. The State Police also have a significant presence at our property every day, including 24 hour coverage on the weekends.

Penn National is committed to diversity in all aspects of our operations - from construction to employment - and we work closely with the African American Chamber of Commerce of Central Pennsylvania on outreach efforts in the minority community, and are continuing to partner with the Greater Harrisburg NAACP. Our diversity efforts are ongoing and our commitment has resulted not only in considerable construction related contracts to minority and women owned firms, but our workforce is also a diversified reflection of our community.

We're also proud to serve as a responsible corporate citizen and to help make a difference in our community by supporting a number of worthwhile local charitable organizations, including Jump Start, Joshua Group, Nativity School, Grantville Food Pantry, Whitaker Center for Science and the Arts, Grantville Community Outreach, Hospice of Central Pennsylvania and the Harrisburg University. We've also provided significant contributions to our local Fire Company in Grantville and have supported the Ono Fire Company as well. That is in Lebanon County. We have donated funds in support of youth and community sports activities right here in East Hanover Township. In addition, Penn National Gaming hosts the annual Penn National Charity Golf Classic in Hershey to benefit Crohn's and Colitis Research at the Hershey Medical Center. It is organized by employees of Penn National Gaming from both the facility in Grantville and the corporate headquarters in Wyomissing. This annual event has raised nearly $1 million to support the Medical Center's research efforts. Penn National has also committed $1 million to the Penn State/Hershey Medical Center's capital campaign to fund the creation of a free-standing Children's Hospital for families across Central Pennsylvania.

We're also working closely with our local and regional business community. Last year, I accepted an invitation by the Dauphin County Commissioners to join the restructured Hershey Harrisburg Regional Tourism Bureau to work together with business leaders in Dauphin, Franklin and Perry Counties to help drive more tourism into the region. Penn National is also serving on the Dauphin County Community and Economic Development's "Quality of Life Task Force" which is charting a course towards creating family-sustaining jobs well into the next generation.

In addition to what I believe are already substantial positive impacts, Dauphin County, in accordance with the Pennsylvania Horse Racing Development and Gaming Act, will receive a sizable portion of the gaming tax generated by Hollywood Casino. These funds are available to use for a variety of purposes that include infrastructure improvements, emergency services, human services and others.

Dauphin County continues to grow. Not only from hospitality services like Hollywood Casino but through exciting facilities like HersheyPark, state-of-the-art medical facilities, state government, light industry and other tourism. I believe one of the most important services in which the county can assist is public transportation. Growth in this area means jobs and jobs increase transportation needs and when added to tourism, it would seem a useful and sensible investment in the community. I know from our own experience at Hollywood, we encountered candidates for employment right here in Harrisburg who were unable to accept positions with us due to the lack of reliable transportation. I would urge you to consider a way to support existing or adding new public transportation routes.

Additionally, emergency services and fire safety equipment and infrastructure must keep up with growth. As I look around even in our host community of Grantville, there are housing developments, hotels and convenience markets that are springing to life. This kind of growth will need its public safety services to grow with it. With East Hanover Township there has been no significant increase in calls to the State Police since Hollywood Casino opened. We do anticipate more traffic and safety of those travelers is of paramount importance. The Grantville Fire Department, like other fire departments in the region, is experiencing growth and will need new and updated equipment in which to keep pace. I might add I am pleased to note that there is an agreement with East Hanover Township to fund some $3 million for infrastructure and other uses in that area.

There are, of course, many other infrastructural improvements that can be made as well as regional planning efforts that will allow for more managed growth. There are services like resident recreation and sports centers or entertainment centers that can benefit our youth or keep us young.

Penn National Gaming and Hollywood Casino is proud to play a part in funding exciting new opportunities for this region and we hope to prosper together. I would like to thank you for allowing me this opportunity to share this very positive impact Hollywood Casino and Penn National Race Course is having on Central Pennsylvania. I look forward to continuing our partnership with our host community, Dauphin County and our region. I will be happy to answer any questions you may have now or at any time in the future.

Mr. Haste: I would like to say from the very beginning in dealing with Penn National Gaming, the corporation has seen this project through in talking about the difficulties of the area. You have been very cooperative and very easy to work with and I appreciate that. Thank you for wanting to improve the area and to be a partner in the area, not just take from it and I greatly appreciate that. One thing that I wanted to ask, you talked about the transportation and I have heard about that a little bit. Your employees, what would be the shift times and route times you would need to deal with the employees?

Mr. Luderitz: We have prepared schedules in some of our discussions with Capital Area Transit that show a variety of schedules that we would need. We are open 24 hours a day and we would have the heaviest need for the most routes in the early part of the day and then late afternoon. We also have employees who work the later shift and we would have some need for those later hours as well. I think it is a matter of degree in terms of how many and what times.

Mr. Haste: Can you share with me the times. I'm really worried about the employees, not so much the gamblers.

Mr. Luderitz: Sure.

Mr. Haste: If the gamblers are able to jump on board that is one thing, but I'm really more concerned about getting transportation for people to be able to have jobs, not recreation.

Mr. Luderitz: Indeed. I can get that for you.

Mr. Haste: If I had that I can talk with them and work with them and make those the priorities.

Mr. Luderitz: I'll get that to you.

Mr. DiFrancesco: What is your effective tax rate?

Mr. Luderitz: Right now our effective rate that we penciled in is about 59%. I cannot tell you that all of the costs are in there yet. It is a definitive 59% when you include the 54.5% gaming tax that we pay, the licensing fees that we pay and the mandatory support fees that we pay including the Pennsylvania Gaming Control Board, our portion to fund them, the Department of Revenue and all state police operations at our facility with a 2,200 plus square footage substation and whatever vehicles and salaries and support equipment they need.

Mr. DiFrancesco: So, again you are paying the salaries and everything for the State Police in the facility. How does your effective tax rate compare to neighboring state operations? Atlantic City, etc.

Mr. Luderitz: Atlantic City of course, which sets the original stage for this region they are at an effective rate of about 9.5%. They have a fund that is called the Casino Reinvestment Development and they fund back monies in to support additional types of infrastructure including potentially additional hotel rooms at their own properties in Atlantic City. But, the effective rate is about 9.5%. Delaware Park, I believe they are in the 15% range as is West Virginia. We are the highest as an effective rate than all of our neighbors.

Mr. Haste: Pennsylvania still is the land of taxes.

Mr. Luderitz: Yes.

Mr. DiFrancesco: But a portion of that comes back.

Mr. Haste: I understand.

Mr. DiFrancesco: I just want to make that clear too. I would like to see more of that coming back to property tax. That is nothing that you can do. That is more directed at the Governor and the Capitol.

The comment that I have is to say you have truly been a great partner. As Commissioner Haste said your organization, as a whole, has been so easy to work with. You have accommodated many meetings with us so that we could be clear about what the expectations are and what we need to be prepared for in order to assist you in your needs. Although most of your needs are met internally, but in terms of operations and this new entity of gaming that has really expanded in Central Pennsylvania you have been a great partner. I was not a fan of gambling being expanded in Central Pennsylvania, but the one thing that I hoped for that once the deed was done that we would have a good partner and you guys have been an exceptional partner. There has been a lot of speculation of what gaming means to this area, but the one thing that is certain is that you have had a tremendous positive impact on a number of organizations as you have said. We have definitely seen the upside and quite honestly based on what I have been able to research in other areas, I'm not really expecting much of a downside. Again, we look forward to your continued growth. From another perspective where you mention about bolstering the horse racing industry, I don't know if it was a coincidence, I don't even know if these are racing horses, but I do know that in Lower Swatara Township a fantastic horse farm cropped up that was not there before. It is just magnificent to drive past it. I can remember in my younger years there was a lot of horse farms in the Township and they all disappeared. It is really neat to be able to drive down to that agricultural area and see a full scale horse operation in play. I don't know if that was a coincidence. I don't know if they were thoroughbreds. I expect that they probably are.

Mr. Luderitz: I think you will see impacts like that.

Mr. Haste: It is a great.

Mr. DiFrancesco: It is fantastic for our local community to see that kind of agricultural investment taking place as a result of what is going on out at the racing facility. This morning I just want to thank you for coming and I want to thank you for all the efforts that you have put forward in serving on different boards and so forth, but also the amount of money that is going back, in a very thoughtful way, in the community and the fact that you can tell from a corporate standpoint that you all take a lot of pride in making sure that you are listening to the local community and you are giving back to it. I just want to thank you for coming out today.

Mr. Hartwick: Just a couple comments from my side. First of all thank you for costing me a whole lot more money with my wife and mother. Being out there I will tell you that one of the things that we have heard, especially during the busy times, is trying to get more machines and I'm glad to see that you are trying to do that. I heard from my mother actually the flat screen giveaway that everybody had their cards in the machines at the same time. Those kinds of promotions are getting people to attend. We want to make sure that you guys are planning for additional capacity, during those high times and promotions. They seem to be going off pretty well so far. During the busy times you guys have been real busy and during the down times it has been a little bit of a challenge. Is that what we are experiencing?

Mr. Luderitz: It is not what every other Pennsylvania casino property did as it opened up. We opened and there was a certain level of business that fell off a little bit after we opened and now it is moving back up to the levels that we expected it to be at.

Mr. Hartwick: You guys did a great job on the inside. I think it is really a great facility. One of the things that I just want to talk about briefly is the difference between the real concerns that may exist as a result of the casinos or racing versus the perception of what actually exists and occurs within the racing. I'm actually the oversight for human services in the County and one of the things that I charged our Human Services Director was to go back and read about the research of what issues may be caused by gaming. Of course there are studies on both sides that are so far apart. We need data to be able to support any of the conclusions. One of the things is there is this big misconception about the increase in crime rate. I think you addressed that here. The ability for somebody who as a result of gambling may run into some crisis or issues or problems there is a referral.

Mr. Luderitz: There is a problem gambling hotline. I do not know the number off the top of my head. I'll go back and get that. There are organizations that provide that kind of support. In addition to the property tax relief and the other funding, for example the host municipality, the county receives, and tourism funding. There are also funds set aside exclusively to address the gambling problems, which are available to the counties.

Mr. Hartwick: Through the State?

Mr. Luderitz: State and then administered down to the counties as I understand the legislation.

The problem gambler is less than 1% of gaming population. Help is available for those who do find themselves having difficulty.

Mr. Hartwick: I'm not taking you down the wrong path. I just want to let you know that the conclusion derived in our human services meetings is that there is no way to start to be proactive in trying to spend money for additional services. We are not going to until we have the data to try to fund additional services. The only way that we can really define what the impact is going to be is by having some sort of screening tool to see which people may enter our system and in fact what other states have experienced was not a terrific amount. The bottom line is we want to try to get information out about help that may be available. We want to couple with what the state is doing. From the categorical side, depending on what that impact is going to be by clients, we actually enter the system by a screening tool and not by perception and then be proactive if in fact we do see an additional increase, which basically we haven't expected to see. The thought about planning - how can you get involved and what kind of data? The conclusion is we are in a wait and see mode to see who actually enters the county system prior to us trying to ask for any additional funding in that area. The County's position is to be able to utilize these dollars in order to maximize the investment and infrastructure and a lot of the different things that you talked about, EMA. We would like to turn the amount of money whether it be $12 million is what is being anticipated and with the MOU Agreement with East Hanover Township $9 million, leverage that $9 million into $100 million and invest that in Dauphin County would be a priority for this Board. We want to thank you for being a great partner and to let you know that I even met with the Grantville community, as you have, in the church organizations and they are coming to the same conclusion. You are not going to see a whole bunch of new human services and programs until we find out what the actual impact is going to be.

1. Chad Saylor, Chief Clerk
   1. Dauphin County Gaming Advisory Board

Mr. Saylor: Commissioners, I did want to take a moment now to point out to you that the victims you have selected for the Gaming Advisory Board are present and ready for sentencing. I would like to put their names into the record and if you could stand as I call out your names: George Groves from South Hanover Township, Justin Warren from West Hanover Township, Lloyd Umberger from East Hanover Township and our own Jim Szymborski, Director of the Tri-County Regional Planning Commission who is the County's at-large delegate. David Craig was here earlier, but was unable to stay for the meeting. He is the other appointee from East Hanover Township.

Mr. Haste: Thank you for agreeing to serve. At this time, I want to put Chad and Tom on the spot. One of the other things that we talked about was a website. Can you update us on that? For the folks from the media, the reason we wanted to do that was as organizations want to apply for these funds there would need to be an application process so these gentlemen could review it. The idea was to have this on the web so they can submit an application. That way these gentlemen won't have to carry paper in their pockets, because everywhere they go, once people know them, they are going to become everybody's best friend for money and we didn't want them to have to have application forms in their pocket. They can refer them to the web. The idea is that those that are interested in applying will go to the web and apply on the website and that way the Board can download it and go from there.

Mr. Saylor: We just added to the website a page on the Gaming Advisory Board. It is under the Economic Development tab of the main page. There is a listing of the advisory board members' names, contact information and there is an application which interested parties can print out and get more information about the program and then fill out the application and send it in.

Mr. Haste: So they could go to the County website?

Mr. Saylor: We are open for business.

Mr. Haste: Go under Economic Development and click on Gaming Advisory Board and there is a form there. Somehow we will let the municipalities know this.

Mr. Saylor: Yes.

Mr. DiFrancesco: It is important to note that the proper channel for community groups to use to apply for different grants is through that website and through the application process. I say it half jokingly and half serious that your likelihood of getting approved is probably better if you go through and fill out an application and send that through the right process than if you accost people at Giant or other places.

Mr. Hartwick: Welcome to our world.

Mr. DiFrancesco: I'm trying to protect these gentlemen from this new notoriety and their identities being known across Central Pennsylvania. It is a heavy responsibility. We've already seen it from the Board's perspective where people have come up to us from the time it was announced that we would be getting money. It sounds like $10 to $15 million is an awful lot of money, and yet probably in the first five minutes each one of us had about $50 million worth of requests. In the early phases there's no question that there are going to be very obvious and direct projects that go to support the operation of the casino, but this money has great potential to help us in a lot of ways such as emergency services, etc. I thank you all for agreeing to serve. It is a heavy responsibility, but certainly one that we need as we step through this process of a lot of great unknowns. We are all in it together. I certainly hope that the public understands that the proper method is to go to the website and get the application and submit the application as required.

Mr. Hartwick: I have spoken to you briefly and I just want to reiterate my initial comments. It would be great to see and I want to say to the folks who want to try to apply and be involved to try to figure out ways to leverage those dollars. If you bring an application along with some federal, state and private support and we have the match being the county gaming money; it certainly would put that application, in my opinion, in a much higher priority than an application that would come in to just fund a new program. There is always infrastructure help available and oftentimes the biggest missing piece is the gap financing or the local match. That local match could certainly leverage these dollars into additional dollars and that is what we would like to see is the biggest impact for utilization of these dollars.

Mr. Haste: Right. Tomorrow is our IDA Board Meeting and that is where the funds that come to the County will be channeled through. Tomorrow they will adopt a Memorandum of Understanding. I think as those folks in East Hanover and the media have been concerned about the Township being shortchanged in their mind by the Legislature that we have all along wanted to make sure that East Hanover was made whole in the process. A Memorandum of Understanding that will be approved tomorrow will enable East Hanover Township to have priority for up to $3 million out of these funds that will be coming in to meet their infrastructure needs. This was an attempt to make sure that the host municipality was taken care of and made whole. We made it clear that their infrastructure will be a priority and that is another key step in making sure that this is a positive impact in Dauphin County and not a negative. Where there was a lot of fear and concern early on I think we have been able to find a way to address that. Hopefully it is sign of a cooperative relationship between the County, East Hanover and the neighboring municipalities.

Mr. Hartwick: All the speculation and trepidation about us being good neighbors was taken care of with the MOU.

SALARY BOARD

A complete set of Salary Board Minutes are on file in the Commissioners' Office.

PERSONNEL

Ms. Lengle: I have another Addendum. On the Personnel Transactions Listing that I passed out last week, Commissioner Hartwick you had questions on Items #25 & 30.

Mr. Hartwick: They have been taken care of.

Ms. Lengle: New Hire #13 I'm requesting that we waive the benefit waiting period. This is non-precedent setting. Are there any questions on the items that I presented? (There was none.)

It was moved by Mr. Hartwick and seconded by Mr. DiFrancesco that the Board approve the Personnel Packet as amended; motion carried.

PURCHASE ORDERS

Mr. Baratucci: The packet is the same as last week, however on Page 30 there is an item that we are going to reduce by $5,000. It is the first item on Page 30. It involves the sealing of the parking deck outside. More prices were obtained and we actually got the vendor, who was low to begin with, to reduce their price by another $5,000. That should be $62,800. Otherwise all the other items are the same and all the budget issues have been resolved.

It was moved by Mr. DiFrancesco and seconded by Mr. Hartwick that the Board approve the Purchase Order Packet as presented with the change to Page 30, as mentioned above; motion carried.

REPORT FROM BUDGET & FINANCE - MIKE YOHE, BUDGET DIRECTOR

Mr. Yohe gave the following report:

Report from the Office of Budget & Finance
May 14, 2008

• May 2, 2008 transferred $259,164.54 to the Payables account from the County's Concentration account for checks issued that week.
• May 9, 2008 transferred $4,158,411.99 to the Payables account and $1,739,959.29 to the Payroll account from the County's Concentration account for checks issued that week.
• Total Term Investments - N/A
• Balance today in INVEST account $169,352.36 rate 2.181%
• Balance today in Susquehanna Bank investment account $31,590,193.53 rate 2.620% (This rate equals the Susquehanna Bank 91-day T-Bill rate plus 120 basis points. It is fixed for the month)
• Balance today in Sovereign Bank investment account $31,245,822.29 rate 2.550% (This equals today's 1-month LIBOR rate of 2.670% minus 12 basis points)
• Balance today in Citizens Bank investment account $64,426,122.72 rate 3.000% (This rate is fixed through 6/30/08)
• Balance today in PNC Bank investment account $1,000.00 rate 1.850% (This equals today's Fed Funds rate of 2.000% minus 15 basis points)
• Balance today in Graystone Bank investment account $1,000.00 rate 1.800% (This equals today's Fed Funds rate of 2.000% minus 20 basis points)
• Balance today in Commerce Bank investment account $1,000.00 rate 1.360% (This equals today's 90-day T-Bill rate of 1.610% minus 25 basis points)

No T.R.A.N. Line of Credit required for 2008.

This is probably about the peak of our cash for the year. We are up over $120 million total. Are there any questions?

Mr. Haste: It's a shame the interest rates aren't a little higher now.

Mr. Yohe: It is half of what it was last year.

Mr. Haste: Have you taken that into account in your projections?

Mr. Yohe: I will in the projections, but in the budget we are obviously not going to meet. I was a little more optimistic in the budget than the Fed being at 2% by now. We will be okay.

REPORT FROM CHIEF CLERK/CHIEF OF STAFF - CHAD SAYLOR

Mr. Saylor: Commissioners, I have one additional item. I would like to ask you to avert your attention back to the Personnel Packet, because we did not act on Item A on the Salary Board and since the Personnel Packet has been approved, we probably should have a motion to table Item #23 on the Personnel Changes.

It was moved by Mr. Hartwick to table Item #23 in the Personnel Packet.

Mr. DiFrancesco: Do we have to go back and amend the original motion?

Mr. Foreman: I think what you have to do is reconsider your prior action and then once you vote to reconsider.

Mr. Haste: We'll reconsider the motion to approve the Personnel Packet. Is there a motion to approve the Personnel Packet, pulling Item #23?

It was moved by Mr. Hartwick and seconded by Mr. DiFrancesco to reconsider the earlier motion to approve the Personnel Packet and that the Board approve the Personnel Packet as amended, pulling Change #23; motion carried.

SOLICITOR'S REPORT - BRUCE FOREMAN, ESQ., SOLICITOR

Mr. Foreman: I have nothing to add to the report that has been circulated, but I would be happy to try to answer any questions that the Commissioners might have. (There was none.)

MATTERS REQUIRING BOARD ACTION

Mr. Haste: We have Items A through U for Board action. Are there any that need to be pulled out or discussed separately? (There was none.)

1. Training Packet.
2. Tax Refunds:
   1. Refund of 2008 Real Estate Taxes - Peter Howland, Esq. - Parcel #65-004-028 - $328.06.
   2. Refund of 2008 Real Estate Taxes - Zembo Shrine - Parcels #10-041-001, #10-048-001, #10-049-001 and #10-049-002 - $10,098.21.
   3. Refund of 2008 Real Estate Taxes - Carol Zinn - Parcel #63-024-244 - $103.39.
   4. Refund of 2008 Real Estate Taxes - Patrick & Trudi Brinkley - Parcel #56-019-119 - $250.70.
   5. Refund of 2008 Real Estate Taxes - John & Gina Marcucci - Parcel #24-013-066 - $524.93.
   6. Refund of 2006, 2007 Interim and 2007 Real Estate Taxes - Hershey Foods Corporation - Parcel #24-008-035 - $26,210.83.
3. Appointment of Matthew P. Stinner to the MH/MR Advisory Board, term expires December 31, 2010.
4. Satisfaction Agreements for:
   1. Hipolito Rosado for the property located at 732 S. 26th Street, Harrisburg, PA 17111 ($650.00).
   2. Nikola Icitovic and Neda Icitovic for property located at 322 Lincoln Ave., Harrisburg, PA 17111 ($2,819.40).
   3. Shirley Ledgister for property located at 554 Radnor St., Harrisburg, PA 17110 ($3,500.00).
5. Contract Amendments for the Conservation District:
   1. Amendment #1 with the Department of Environmental Protection to increase funding, revise payment terms for Phase II of the Watershed Stormwater Management Plan Grant. New allocation is $147,901.36.
   2. Proposal for additional services from Herbert, Rowland & Grubic, Inc. for preparation of Phase II Act 167 Stormwater Management Plan for Dauphin County.
6. Application for Reimbursement for Environmental Initiative Growing Greener Grant to repair the erosion at stormwater outfalls located at the County Prison and the Schaffner Youth Center.
7. Facility Use Application - Rental of Millersburg High School Auditorium in case of inclement weather for July 19 Musicfest.
8. Guaranteed Tropical Plan Maintenance Service Agreement between Dauphin County and Greenhill's Plant Interiors, LLC for the maintenance of the existing plants in the Courthouse and Administration Buildings.
9. Proposal from Intercon Automation for building automation system retrofit for the Dauphin County Bulk Storage Building.
10. Lease Agreement Amendment #1 between Dauphin County Area Agency on Aging and Rutherford House.
11. Amendment #1 to Purchase of Service Agreement between MH/MR and Impact Systems, Inc.
12. Administrative Agreement between MH/MR and the Capital Area Behavioral Health Collaborative.
13. Comprehensive Management Services Agreement between the Counties of Cumberland, Dauphin, Lancaster, Lebanon and Perry and Community Behavioral Health Care Network of Pennsylvania, Inc.
14. Amendment #2 to the Human Services Development Fund Agreement between Dauphin County and Family Service Partners.
15. Memorandum of Lease with Harold D. Engle for certain tract of ground in Upper Paxton Township which shall be used for the installation of all radio equipment associated with the cell tower.
16. Request for Exoneration (Mobile Home) - Oak Knoll Estates - Parcel #22-013-026-011-0308 - $106.10.
17. Purchase of Service Per Diem Rates between Children and Youth and:
    1. Baptist Children's Service
    2. Steelton-Highspire School District
18. Appointment of the following individuals to the Dauphin County Gaming Advisory Board: George Groves, Justin Warren, Lloyd H. Umberger, Jr., David L. Craig and James Szymborski.
19. Resolution #11-2008 permitting the consumption and/or possession of alcoholic beverages at the first Inaugural Blues & Wine Festival at Fort Hunter Park on May 31, 2008.
20. Letter of Engagement from Rhoads & Sinon LLP to represent Dauphin County in the initial review of employee and local tax withholdings and practices.
21. Letter of Engagement for appointment of Jeff Engle as special counsel to Dauphin County Tax Assessment. (PENDING REVIEW BY SOLICITOR'S OFFICE)

It was moved by Mr. DiFrancesco and seconded by Mr. Hartwick that the Board approve Matters Requiring Board Action Items A through U, as listed above; motion carried.

FORMER BUSINESS

(There was none.)

NEW BUSINESS

(There was none.)

COMMISSIONERS' DISCUSSION & ACTIONS

Mr. Haste: Just a reminder that we have Prison Board this afternoon.

CORRESPONDENCE

Mr. Haste: We have the correspondence that has been received by the Board this week, Items A through O, which will be handled by the staff appropriately.

1. Notification from Glace Associates, Inc. advising that the Susquehanna Area Regional Airport Authority is applying to DEP for a permit regarding rehabilitation work and new paint on water tank #4.
2. Notification from R. J. Fisher & Associates, Inc. advising that The McNaughton Company is applying to DEP for the renewal of a General NPDES Permit for stormwater discharges associated with construction activities at Deer Path Woods subdivision in Susquehanna Township.
3. Notification from Evans Engineering, Inc. advising that Hershey Foods Corporation is applying to DEP for a General NPDES Permit for stormwater discharges associated with construction activities at Hershey's Chocolate World Employee Satellite Parking.
4. Notification from Rettew advising that Pittsburgh Terminals Corporation is applying to DEP for an Air Quality General Plan Approval Application for the bulk gasoline terminal located at 5140 Paxton Street in Swatara Township.
5. Notification from Pennoni Associates, Inc. advising that the Milton Hershey School is applying to DEP for a General Permit 5 for the installation of a new four inch underground electrical conduit to replace an existing collapsed conduit in Derry Township.
6. Notification from Rettew advising that E. G. Stoltzfus and Yingst Homes are applying to DEP for a NPDES General Permit regarding construction activities at 6100 Cider Press Road in Lower Paxton Township.
7. Notification from H. Edward Black & Associates, Inc. advising that Platinum Plus Partners, IV, L.P. is applying to DEP for a Sewage Facilities Planning Module Exemption and National Pollutant Discharge Elimination System Permit for construction activities at 131 Fulling Mill Road in Lower Swatara Township.
8. Notification from Benatec Associates advising that the Hershey Entertainment Group is applying to DEP for a GP-05 Permit regarding the Boardwalk Expansion 2009 project in Derry Township.
9. Notification from CET Engineering Services advising that the Lower Paxton Township Authority is applying to DEP for a General Permit #8 regarding the Earl Drive Interceptor Replacement.
10. Notification from Glace Associates, Inc. advising that the Williamstown Borough Authority is applying to DEP for a BDWM-GP-5 permit for the extension of a water transmission main from the water treatment plant to West Market Street in Williamstown Borough and Williams Township.
11. Receipt of a copy of a letter from DEP to The Wiconisco Company advising that they granted a waiver from the requirement to obtain a permit to conduct coal exploration in Wiconisco Township. (Intent to Explore Notice No. 22081102)
12. Receipt of a copy of a letter from DEP to The Wiconisco Company advising that they granted a waiver from the requirement to obtain a permit to conduct coal exploration in Wiconisco Township. (Intent to Explore Notice No. 22081101)
13. Receipt of a copy of a letter from DEP to Meadowbrook Coal Company, Inc. indicating the enclosures of the Surface Mining Permit No. 22070201 and Authorization to Mine Permit No. 1691-22070201-01, Dayton Bank Operation in Williams Township and an approved copy of the respective application.
14. Notification from Grove Associates advising that they are applying to DEP for a General NPDES Permit for stormwater discharges associated with construction activities located on the west side of Hershey Road in West Hanover Township.
15. Notification from Raudenbush Engineering, Inc. advising that Nathan R. Crawford is applying to DEP for a General NPDES Permit for stormwater discharges associated with construction activities on 2505 Brinser Road, Middletown.

PUBLIC PARTICIPATION

Mr. Haste: We are again back at the point in time for public participation. Is there anyone in the audience that would like to address the Board? (There was none.)

ADJOURNMENT

There being no further business, it was moved by Mr. DiFrancesco and seconded by Mr. Hartwick that the Board adjourn.