Thursday, February 10, 2005

Cost to reopen Battle Creek: $12 million

County officials looking for best way to finance landfill expense

By Jamie Turner
Staff Writer

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.

We can be reached at pagenews@shentel.net.



Back to top