Page County officials estimate it will cost about $3.5 million to get
Battle Creek Landfill, which has been closed for the past 11 months, in
working order.
That cost is above and beyond the $8.5 million settlement the county
reached in January, a settlement that stopped an upcoming legal battle and
gave the county operational control at the local landfill.
So, it’s likely to cost the county in the ball park of $12 million to
reopen the gates to Battle Creek and start taking in trash, something that
is still months away.
During a meeting Monday, Feb. 7, the Page County Board of Supervisors
discussed the price tag to reopen the landfill. The supervisors talked
about needing about $12 million, and they went over possible ways to
secure the financing.
This week’s discussion follows the Jan. 18 settlement agreement between
the county and former landfill operator National Waste Services (NWS) of
Virginia and its financial backer CapitalSource Finance of Maryland. The
county agreed to pay $8.5 million to CapitalSource to gain control at
Battle Creek.
But in order to reopen the landfill as a locally-run facility, it’s
likely to cost another $3.5 million to pay for state-mandated
improvements. Battle Creek was closed last March by the Virginia
Department of Environmental Quality after the agency cited numerous
operational deficiencies.
Topping the the county’s list of things to change at the landfill is
transforming its appearance — turning the mounds of brown dirt, visible
for miles around, to hills of green.
"It’s no secret, but our big concern is that big brown mountain out
there," said Rick Anderson, Page County’s solid waste coordinator. "We
have to turn it green."
When NWS officials took over at Battle Creek three years ago, company
official Bart Begley was quoted in the Page News and Courier as saying:
"That hillside is going to be green, even if I have to go up there with a
brush and paint it myself."
That didn’t happen.
Along with improving the landfill’s appearance by planting proper
vegetation, the county must also fix 16 other deficiencies cited in a
Sept. 15, 2004, warning letter from the DEQ before the landfill can
reopen.
Those deficiencies included stress cracks, signs of leachate leaks,
improper gas monitoring and evidence of slope movement.
County officials also plan to finish construction on an incomplete
landfill cell, plus remove about one million cubic yards of fill dirt.
This will help fix the steep slopes leading to the working face of the
landfill.
But Anderson said DEQ’s main concern was that the county stayed within
the specifications of the permit, which includes accepting no more than an
average of 250 tons of waste per day.
However, the county may later apply for a permit modification to
increase the daily tonnage cap to an average of 750 tons.
With its to-do list from the state, county officials are now exploring
avenues to borrow the $12 million needed for improvements and to pay the
settlement.
According to the terms of the settlement, Page County must pay
CapitalSource $8.5 million on or before June 1. But that date may be
extended several weeks because all parties have yet to sign the settlement
deal.
County officials are currently looking into using the Virginia Resource
Authority (VRA) as a vehicle to borrow money. Last week, county officials
met with the state resource authority in Richmond to discuss loan
options.
The VRA would bid out Page County’s request to borrow $12 million in a
pool with other jurisdictions seeking bank loans this May in Richmond. The
VRA does this twice a year to help localities borrow money. By using the
VRA, the county could receive a lower interest rate.
According to Page County Administrator Mark Belton, using the VRA could
be advantageous.
"The VRA has better rates for us," Belton told the supervisors. "But it
would be hard to restructure our loan later down the line."
Supervisors also hope to extend the loan for at least 30 years to take
the pressure off of current county finances.
"We’re talking about $8.5 to $12 million here," said Supervisor Charles
C. Ballard (R-Dist. 3). "That is an investment for the long-term future.
And I think some of these future generations should have to pay some on
this too. I don’t think we should borrow money on a shorter term. If we
can get a 30- or 40-year term, we should go for that."
The county board unanimously approved to move forward with plans to
file an application with the VRA.
At the same time, the supervisors also encouraged Belton to look into
using the USDA’s Rural Development Authority as a vehicle to borrow money.
Officials are also considering hiring a financial advisor and a bond
counsel to help guide the county as it looks into financing options.
Carolyn Madden Perry of Harrisonburg has served as the county’s bond
counsel in the past. County supervisors agreed to contact Perry to see if
she is available to assist with the landfill.
No final decisions were made on how the county will pay the estimated
$12 million it’s likely to cost to gain control of and reopen Battle
Creek.