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HomeMy WebLinkAbout10/24/2006 - Special October 24, 2006 843 Roanoke County Administration Center 5204 Bernard Drive Roanoke, Virginia 24018 October 24, 2006 The Board of Supervisors of Roanoke County, Virginia met this day at the Roanoke County Administration Center, 5204 Bernard Drive, Fourth Floor Training Room, Roanoke, Virginia, for the purpose of a joint meeting with the City of Roanoke and the Roanoke Valley Resource Authority. IN RE: CALL TO ORDER (COUNTY OF ROANOKE) Chairman Wray called the meeting to order for the Roanoke County Board of Supervisors at 12:20 p.m. The roll call was taken. MEMBERS PRESENT: Chairman Michael A. Wray, Vice-Chairman Joseph McNamara, Supervisors Michael W. Altizer, Richard C. Flora MEMBERS ABSENT: Supervisor Joseph B. "Butch" Church STAFF PRESENT: Elmer C. Hodge, County Administrator; Paul M. Mahoney, County Attorney; John M. Chambliss, Assistant County Administrator; Dan O'Donnell, Assistant County Administrator; Mary V. Brandt, Assistant Deputy Clerk IN RE: CALL TO ORDER (CITY OF ROANOKE) Mayor Harris called the meeting to order for the Roanoke City Council at 12:21 p.m. The roll call was taken. 844 October 24, 2006 MEMBERS PRESENT: Mayor C. Nelson Harris, Vice-Mayor David B. Trinkle, Council Members Alfred 1. Dowe, Jr., Beverly 1. Fitzpatrick, Jr., Sherman P. Lea, Gwendolyn W. Mason MEMBERS ABSENT: Council Member Brian J. Wishneff STAFF PRESENT: Darlene L. Burcham, City Manager; Stephanie Moon, Acting City Clerk IN RE: CALL TO ORDER (ROANOKE VALLEY RESOURCE AUTHORITY) Vice Chair Anne Marie Green called the meeting to order for the Roanoke Valley Resource Authority Board at 12:21 p.m. The roll call was taken. MEMBERS PRESENT: Vice Chair Anne Marie Green, Board Members Robert K. Bengtson, Keith T ensen MEMBERS ABSENT: Chairman Bittle Porterfield, II, Board Members Kevin S. Boggess, Diane D. Hyatt, Suzie Snyder STAFF PRESENT: Mark Williams, General Counsel; Steve Barger, Operations Manager; Deborah Charles, Board Secretary INRE: OPENING CEREMONIES The invocation was given by John M. Chambliss, Jr., Assistant County Administrator. IN RE: REMARKS AND INTRODUCTIONS Vice Chair Green expressed appreciation to the County Board of Supervisors and the City Council for their willingness to meet with the Roanoke Valley Resource Authority (Authority). She introduced the Authority Board of Directors and staff who were present and advised that Mr. Hubbard would make a PowerPoint October 24, 2006 845 presentation on the operation of the Authority. She advised that they would appreciate any recommendations, observations, or suggestions from those present. INRE: ROANOKE VALLEY RESOURCE AUTHORITY Mr. Hubbard advised that he has made arrangements to brief Supervisor Church at a later date. He reported that his presentation would cover the formation of the Authority, review its facilities, and present its current financial picture. Mr. Hubbard advised that the Authority was formed under the Code of Virginia Water and Waste Authorities Act and was originally incorporated by the State Corporation Commission on August 25, 1989, as the Roanoke County Resource Authority. It assumed its present form in October 1991 as a result of a collaborative effort by the County of Roanoke, the City of Roanoke, and the Town of Vinton. He further advised that the Authority operates through a member use agreement with a board of directors who are appointed by the members. He reported that the Authority's mandate was to fund, construct, and operate a regional solid waste disposal system. He noted that several of the directors have served for many years and that the Authority has benefited from their collective experience. Mr. Hubbard advised that a revenue bond issued in 1992 in the amount of $33,830,000 furnished the start-up capital. The funds for operating costs and debt payments are generated from disposal charges levied against users known as tipping fees. He reported that the financing plan was well constructed and that the Authority's 846 October 24, 2006 financial performance has exceeded the expectations and projections of the underwriters and rating agencies. Mr. Hubbard advised that the Smith Gap Landfill, which is located in the Bradshaw area of Roanoke County, consists of 1,200 acres of which 800 acres are available for disposal purposes. He added that due to outreach efforts to the community, the Authority was able to build the landfill with the support of local residents and that the Authority still maintains a good relationship with its neighbors. Mr. Hubbard advised that the Tinker Creek Transfer Station is located at 1020 Hollins Road, N.E. in the City of Roanoke. He reported that the City constructed the waste transfer station on a former 16-acre industrial site with support from the community. He added that the City received an All American Cities Award in 1996 as result of this project. Mr. Hubbard advised that in addition to operations at the Smith Gap Landfill, the Authority is responsible for post closure care for the Rutrough Road Landfill. This landfill was opened in 1976, closed in 1994, and capped in 1996. Mr. Hubbard advised that the Authority has a long-term agreement with Norfolk Southern for the transportation of waste via rail from the transfer station to the landfill. This agreement runs until June 30, 2018, with 5-year options and annual 2 percent increases thereafter. He further advised that this agreement has proven successful for both parties. October 24, 2006 847 Mr. Hubbard advised that the Smith Gap Landfill opened on May 16, 1994. He reported that all waste is brought to the transfer station prior to its removal to the landfill and that approximately 100 vehicles pass through the transfer station on a daily basis. He reported that over the past 14 years of operation, the Authority has taken in 1.9 million tons of waste and sent 1.8 million tons to the landfill. In response to an inquiry from Council Member Fitzpatrick, Mr. Hubbard reported that the tipper at the transfer station was the largest inside tipper in the world at the time it was put into operation. Mr. Hubbard reported that the Authority originally had a landfill permit for 4.9 million tons of waste but that this has been raised to 7.7 million tons. He advised that the life expectancy of the landfill was originally estimated to be approximately 55 years but the landfill's current life expectancy is now estimated to be approximately 100 years. This increase is due to the utilization of new technologies that allow more waste to be deposited in a smaller area and to the current trend of private waste companies operating their own facilities rather than using the Authority's. He advised that the improved technologies and the diminished waste stream have allowed the Authority to operate more efficiently and cost effectively than originally anticipated. Mr. Hubbard advised that the annual budget is $9 million which is broken down as follows: (1) personnel - 18 percent; (2) operations - 31 percent; (3) reserves - 19 percent; and (4) debt service - 32 percent. He further advised that tipping fees have remained stable and are lower than the original underwriters' estimates due to the 848 October 24, 2006 Authority's increased operational efficiency. He added that $18 million in savings has been generated for the members as a result of this stability. Council Member Mason inquired how the Authority handles dead animals. Mr. Hubbard reported that the Authority is not allowed to take in wild animals such as deer. Domestic animals can be brought to the transfer station where they are weighed and then buried separately in the landfill. He noted that an individual wishing to bring in a dead animal must call first. Mr. Hubbard reported that revenue generated by the tipping fees is apportioned in the following manner: (1) $4,275,545 is allocated to operations with the landfill receiving 67 percent of the funds and the transfer station receiving 33 percent; (2) $2,771,125 is allocated to debt service with the landfill receiving 44 percent of the funds, the transfer station receiving 23 percent, and rail receiving 33 percent; and (3) $1,560,000 is allocated to deposits and reserves with the landfill receiving 89 percent of the funds and the transfer station receiving 11 percent. Mr. Hubbard advised that the $33,830,000 debt from the bond issue has been paid in full and that the Authority has issued two $10 million refunds to its members, the first in 1998 and the second in 1999. According to current projections, all Authority debt will be paid in full by 2012. He further advised that tipping fees are currently $5 less per ton than they were in 1994 due to the Authority's strong financial position. He added that the Authority's goal is to payoff the remaining debt without raising tipping fees. October 24, 2006 849 Mr. Hubbard advised that the Authority has several current projects including: (1) permit modifications to improve technology in the expansion area of the landfill; (2) maintaining tipping fees at current levels; (3) holding household hazardous waste collection events at the transfer station; (4) maintaining post-closure care of the Rutrough Road closed landfill; (5) expanding electronic waste collections at the transfer station; and (6) researching methods of exploiting landfill gas. Mr. Hubbard concluded that the Authority was the first attempt at large- scale regional collaboration in the Roanoke Valley and that the Authority's success provides a good example of what can be achieved through cooperation. IN RE: COMMENTS BY BOARD OF SUPERVISORS, CITY COUNCIL, AND ROANOKE VALLEY RESOURCE AUTHORITY Council Member Fitzpatrick thanked the Authority and staff for their hard work in making the Authority so successful. He advised that the Authority's success should be communicated to the citizens. Supervisor Flora inquired how the debt service payoff would be handled. Mr. Hubbard advised that a plan will be developed and brought before the governing bodies of the member localities. He reported that this plan would cover tipping fee reductions and future landfill expansions. Supervisor Altizer expressed his gratitude for the way the Authority handled water testing during the scare that developed when the City of Bedford had problems with its landfill. 850 October 24, 2006 Council Member Dowe inquired about opportunities for the Authority to accept waste from other localities. Mr. Hubbard responded that this activity is regulated by the State and that the member use agreement would have to be renegotiated to allow the Authority to accept waste from other localities. In addition, the Authority made a promise to its neighbors not to engage in this type of activity. He added that the Authority is financially successful without the need to accept waste from other localities and that this would not benefit the Roanoke Valley. Mayor Harris noted that maintaining control of what goes into the landfill allows for better management and helps mitigate environmental and legal issues. Ms. Burcham advised that as a result of the City focusing on its recycling efforts, certain materials have been removed from the City's waste stream. She asked what effect this would have on tipping fees. Mr. Hubbard responded that the material the City has diverted has not negatively impacted the Authority. He advised that the Authority's core focus is disposal but that the Authority does recycle approximately 10 percent of the waste taken in at the transfer station. Mr. Hubbard further advised that the Authority could expand its recycling efforts if directed to do so by the members, but he added that would entail additional planning and that a larger facility would be required. He added that members save money when they divert materials from the landfill. Council Member Fitzpatrick inquired about the possibility of implementing regional trash collection in the future to save money and increase efficiency. October 24, 2006 851 Mr. Hubbard replied that the concept was examined six years ago but that it was not financially feasible at that time. Chairman Wray advised that cooperative routes have been established where it was expedient to do so. Vice Chair Green advised that the incompatibility of the trash collection methods used by each locality prevents a regional trash collection plan from being easily implemented; however, she added that the Authority may re-examine the concept in the future. Ms. Burcham advised that implementing a regional trash collection system would require a great deal of planning and that after the Authority's debt service has been retired may be a good time for a re- examination. Mr. Hubbard stated that the Authority would re-examine the concept if so directed. Mr. Hodge expressed his appreciation for the progress the Authority has made to date. He commended Mr. Hubbard for developing and implementing the Authority's innovative waste transportation system utilizing rail in partnership with Norfolk Southern. He further commended Mr. Hubbard for the Authority's efficient operations. Chairman Wray thanked Mr. Hubbard and his staff, adding that the Authority is run very efficiently. He requested that the Authority continue to be proactive regarding plans for the future to enable it to remain as successful as it is today. Vice Chair Green thanked the Board of Supervisors and the Council for meeting with the Authority. She thanked Mr. Hubbard for his leadership and hard work. 852 October 24, 2006 She advised that Mr. Hubbard is getting close to retirement and that he will be hard to replace when the time comes. IN RE: ADJOURNMENT Chairman Wray expressed appreciation to those attending the meeting and to Mr. Hubbard for his presentation. He adjourned the Roanoke County Board of Supervisors meeting at 1:15 p.m. until Tuesday, October 24,2006, at 3:00 p.m. for the regularly scheduled meeting of the Board. Mayor Harris adjourned the Roanoke City Council meeting at 1:16 p.m. Vice Chair Green adjourned the Roanoke Valley Resource Authority Board meeting at 1: 17 p.m. Submitted by: Approved by: ~~I'l..j C. G.)~J Michael A. Wray - -"'t Chairman Mary Vi. randt Assist t Deputy Clerk