AGENDA DATE: 11/4/2015
TITLE:
Title
Ivy MUC - Transfer Station Upgrade
BODY
SUBJECT/PROPOSAL/REQUEST: Consideration of alternatives to upgrade the solid waste transfer station at the Ivy Materials Utilization Center
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Foley, Walker, Foley, Davis, Graham
PRESENTER (S): Doug Walker, Deputy County Executive
LEGAL REVIEW: Yes
REVIEWED BY: Thomas C. Foley
BACKGROUND: Over the past two years, the Board has considered various options regarding the current transfer station facilities and operation at the Ivy Materials Utilization Center (MUC). In part, the evaluation of alternatives for the continued use of the Ivy MUC has been driven by the need to bring the facility into compliance with applicable Virginia Department of Environmental Quality (VDEQ) regulations. Those regulations require that the transfer station operation be covered to prevent the waste material from being exposed to precipitation.
The Ivy MUC is owned and operated by the Rivanna Solid Waste Authority (RSWA) pursuant to an operating agreement involving RSWA, the County, and the City of Charlottesville. RSWA holds the VDEQ permit governing the transfer station operation and is guided currently by a Letter Agreement with the VDEQ to prepare and present by December 31, 2015 a detailed plan for bringing the transfer station into regulatory compliance. The RSWA and the County have been working collaboratively to develop viable alternatives for consideration by the Board and the RSWA that will address the compliance issues and retain the Ivy MUC’s use as a transfer station.
Following a discussion of transfer station options at its meeting on March 11, 2015, the Board reached consensus regarding the need to work closely with RSWA to refine the scope and estimated costs for options that involve the modification of the existing facility, as well as options that require the development of a new facility on a portion of the Ivy MUC property referred to as the “western site.” Further, recognizing that the RSWA is the owner of the property and the holder of the VDEQ permit, the Board directed staff to determine if there was opposition by the RSWA to one or more of these options so that the Board could have that input prior to a final determination. As part of its March 11 discussion, the Board indicated little interest in a larger, 15,000 plus square foot new transfer station facility. Accordingly, staff and RSWA have not evaluated that alternative further.
STRATEGIC PLAN:
Critical Infrastructure: Prioritize, plan and invest in critical infrastructure that responds to past and future changes and improves the capacity to serve community needs.
Natural Resources: Thoughtfully protect and manage Albemarle County’s ecosystems and natural resources in both the rural and development areas to safeguard the quality of life of current and future generations
DISCUSSION: The purpose for this meeting is for the Board to indicate its clear preference for one of four options for upgrading the Ivy MUC transfer station. Doing so will give clear indication of the level of investment desired by the Board for this facility for financial planning purposes and will enable the County to continue its work with RSWA to resolve all issues that have bearing on the development and submittal of a detailed plan to VDEQ by the deadline of December 31, 2015.
The options being considered by the Board are detailed in the Draper Aden Associates final report that was presented initially to the Board on October 7, 2015. The final report is attached (Attachment A). This report, prepared in close collaboration with key representatives of RSWA and with Supervisors Palmer and Mallek, provides a comprehensive assessment of four basic options - two of which involve modifications to the existing transfer station facility and two of which involve the construction of a new transfer station facility on the “western site” as previously described. The report includes the identification of key assumptions that inform the assessment of the four options and provides relevant background information regarding the changes in the use of the facility over the last several years. The report also contains summary descriptions of the options under consideration, a comparison of key aspects that may be meaningful in the relative comparison of the options, and detailed cost estimates for each option related to both capital and operating impacts. The report also includes preliminary site plans and building elevations so that the Board can better visualize how the various options will “fit” on Ivy MUC property.
BUDGET IMPACT: Planning level capital cost estimates for the four distinct options under consideration range from $750,650 to $2,587,200. The County currently has $1.2M in the FY16 Capital Budget for use on this project, which could be used to offset in whole or in part the capital portion of any of the four options.
Preliminary operating cost estimates vary for each option, depending upon key assumptions involving multiple factors including, but not limited to, debt service/amortization and depreciation, compaction and associated haul weights, personnel requirements, tonnage received, and the assumed useful life of the facility.
Given all represented assumptions, including using debt service for the capital investment, the estimated total annual net cost to the County ranges from $$493,612 for option 1A to $696,512 for option 2B.
The RSWA FY16 budget includes $351,426.50 in County funding support for the Ivy MUC transfer station operation. When comparing this FY16 budgeted contribution to the estimated total annual net cost to the County, the resulting increase in projected annual cost to the County is as follows:
Option 1A - $142,165.50
Option 1B - $235,285.50
Option 2A - $300,085.50
Option 2B - $345,065.50
Please note that a capital fund cash contribution could be used to reduce or eliminate the need for debt service, depending on the specific option selected.
RECOMMENDATION:
Recommendation
Staff recommends the Board select its preferred option for upgrading the transfer station facility at the Ivy MUC. Doing so will enable the County to indicate its clear preference to RSWA and to then focus timely attention to resolving any outstanding issues pertaining to the governing Operating Agreement so that RSWA is able to develop and submit the project plan to VDEQ by the deadline of December 31, 2015.
ATTACHMENTS:
A - DAA Final Report; September 29, 2015