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Memorandum To: Members of the Region 2000 Services Authority Board

From: Lynn Klappich, Program Manager

Date: May 24, 2017

Project Name: Region 2000 – Solid Waste Management 2030

Project Number: B09107-125B

Subject: Generic costs – New landfill development and operations

cc: Gary Christie, Working Group, Mike Lawless

At the November 30, 2016 Region 2000 Services Authority Board meeting, the Board requested

information on the costs that might be associated with the development of a new generic landfill

that would serve the Authority for 25 years. Without a specific location, this is a challenging

request given the unique and specific requirements associated with any landfill site. Draper Aden

Associates has considered the request and has compiled information for the Board’s review.

There are a significant number of factors that must be considered when developing landfill costs.

Key factors impacting evaluation of capital costs include the following:

Land requirements and purchase price

Access road improvements including improvements to primary and secondary roads

leading to the site, and landfill entrance development.

Utility requirements for the facility and infrastructure improvements (e.g. water, sewer,

electricity)

Permitting requirements including local land use permits (rezoning, special use, site plan

approval), VDOT permits, VDEQ landfill and stormwater permits, air permitting,

modifications to the regional solid waste management plan, and probable wetland

permitting).

Compliance monitoring system (groundwater monitoring wells, gas monitoring probes,

stormwater outfalls)

Architect/Engineering permitting, design, bidding and construction phase services.

Infrastructure requirements (e.g. office, scales and scale house, maintenance facility,

landfill gas extraction systems, internal perimeter landfill roads, etc)

Leachate handling facilities (e.g. ponds or tanks; pump stations, loading areas, external

sewer lines)

Liner and cap requirements

Storm water BMP requirements

Phasing of landfill development

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Debt service

Inflation

Based on information obtained over the course of the project during interviews and public

outreach, and based on the collection operations of the current members of the Authority, the

preferred location for a new landfill would be within a “reasonable” distance of the primary waste

generators. Reasonable distance is considered for this region to be within 5 miles (or less

depending on the travel time) of the City of Lynchburg city limits.

Key factors impacting evaluation of operational costs include the following:

Similarity of generic operations to current operations (e.g. personnel, fuel, monitoring)

Equipment and equipment replacement schedule

Leachate handling

Inflation

Similar to the strategic planning cost evaluation of the Livestock Road landfill expansion, inflation

has not been considered for this evaluation.

To initiate the evaluation, the approximate size of a generic landfill that could service the Authority

for 25 years was estimated. The required capacity of the landfill is a function of tonnage

projections and waste densities. Tonnage was assumed to be flat over this period at 203,000 tons

per year so approximately 5.1 million tons would be generated and require disposal assuming that

there was no significant growth in waste generation. Using the tonnage projections and the current

(average) waste density (aka landfill utilization factor) being achieved at the existing landfill, a

capacity volume was estimated. Disposal capacity based on this analysis was estimated to be

approximately 6.8 million cubic yards. (See Table 1)

With assumptions about the height of the landfill (to be no higher than currently permitted landfill)

and configuration (square pyramid with 3:1 slopes), the area of the disposal unit was estimated.

Area based on this analysis was calculated to be 57 acres for the waste disposal unit only. (See

Table 1). This was rounded to 60 acres for the evaluation.

To the disposal unit area must be added acreage for buffers (200’ assumed which exceeds VDEQ

regulatory requirements), borrow/stockpile areas, and infrastructure (e.g. roads, leachate holding

tanks, office, scales and scale house, maintenance facility and stormwater control basins and

stormwater/E&S controls, etc). The actual size of any landfill would ultimately be determined by

surface and subsurface site specific characteristics. The estimated facility boundary including the

disposal unit and additional acreage in support of the permit requirements and operations, was

estimated to be 300 - 500 acres. (See Table 1)

Purchase price for this land was assumed to range from $12,000/acre (for a larger tract of property)

to $30,000/acre (for a smaller tract). This is higher than the purchase price for the Bennett property

which was approximately $6,000 per acre because of consideration for the preferred location. The

actual cost would be a function of the location, availability of the land and existing usage. Purchase

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price for the acreage identified above was estimated to range from $6.0M (larger tract) to $9.0M

(smaller tract) exclusive of any financing charges or supporting activities. (See Table 1)

Table 2 considers the total capital costs (in 2017 dollars) for construction and closure of a new

landfill generally based on costs incurred by the Authority for various projects at the Livestock

Road landfill including Route 29 improvements, utility extensions, infrastructure construction

costs, gas control system expenses, as well as liner and cap construction costs. Bid costs from

other similar landfill projects in FY 2017 were also considered.

It should be noted that landfill costs must include not only development costs but should also

consider closure (final capping) and 30-year post closure care costs (mirrored in the current budget

as closure and post closure reserve funds). Funding for closure and post closure care reserves is

included under operations in the summary table (See Table 3)

The capital costs in Table 3 do not consider inflation or landfill phasing which could add a

significant amount to the estimate. The “generic” landfill, would not be required until 2031 but the

costs have not been inflated to that year. Engineering/architect fees would include permitting,

design, bidding and construction phase services and have been estimated as a percentage of the

capital costs.

Operation costs were taken from the FY 2018 Region 2000 Services Authority budget exclusive

of closure/post closure reserve funding and debt service. A new calculation for closure/post closure

care reserves was completed and included under operations for the generic site. Additional costs

have been added for leachate handling. (See Table 3.)

Table 3 summarizes the estimated costs for the development and operation of a new landfill. These

do not include costs for host fees, property value protection plan reserve funding, natural disaster

reserve funding, O&M reserve funding or other reserves as may be required in the future or by

lending institutions.

This information has been generally prepared in a manner similar to that used by Burns and

McDonnell for their Tasks 3 and 4 option evaluation. However given the uncertainties associated

with the development of costs for a landfill in an unknown location, the information should be

used cautiously.

ATTACHMENTS:

Table 1 – Conceptual landfill land requirements, dated 5/11/17

Table 2 - Conceptual landfill capital construction costs, dated 5/11/17

Table 3 – Conceptual cost of services (lower and upper ranges), dated 5/11/17

TABLE 1

REGION 2000 SERVICES AUTHORITY

GENERIC LANDFILL EVALUATION

CONCEPTUAL LANDFILL LAND REQUIREMENTSNo growth.

ITEM VALUE

Tonnage projected from 2031 - 2054 5,075,000

AVG. LUF (pounds per cubic yard) 1,500

Volume required (cubic yards) 6,766,667

Volume required (cubic feet) 182,700,000

Height of landfill (max) 120

Area = calculated at 3:1 slopes 2,496,000

Area, acres 57

Area + 200' buffer (33 acres) 90

Factor for infrastructure/ borrow soils 2.0

Minimum acreage required 180

Contingency (1.5 to 3.0 - See note below) 300 - 500

Cost - Low range @ $12,000/acre (large tract) $6,000,000

Cost - High range @ $30,000/acre (small tract) $9,000,000

NOTES:

1. Actual purchase would require 1.5 to 3.0

times as much land (e.g. 300 - 400 acres) to account

for terrain, environmental or subsurface issues,

additional buffers, etc.

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Requirements no growth - LPK 5/11/17

TABLE 2

REGION 2000 SERVICES AUTHORITY

GENERIC LANDFILL EVALUATION

CONCEPTUAL LANDFILL CAPITAL CONSTRUCTION COSTS Inflation/financing has not been factored in. Landfill life 25 years beginning in 2030/2031.

ITEM LOWER RANGE UPPER RANGE DESCRIPTION

LAND PURCHASE AND PERMITTINGLand purchase (Property price only) $6,000,000 $9,000,000 Table 2

Services supporting purchase $200,000 $300,000 Surveying/ESA/Legal/Other fees associated with land purchase

Rezoning/special use permit $500,000 $1,000,000

Permitting $1,500,000 $2,000,000 Part A/Part B/VDOT entrance/wetland/VPDES stormwater/Special

use permitting

SUBTOTAL $8,200,000 $12,300,000

Access Improvements $1,800,000 $3,600,000 Primary and secondary road improvements - could include turning

lanes, signals, pavement improvements, entrance etc.

Buildings (Office, maintenance facility,

scales/scale house/site work

$3,600,000 $4,600,000 Assumes no usable structures at the site; includes costs for

screening.

Infrastructure development $8,000,000 $12,000,000 Assumes: perimeter gravel roads, stormwater and BMPs, sediment

basins, borrow area development, external leachate collection

system, leachate tanks, pump station, utilities and active gas

control system etc. over life of facility.

Leachate transmission development $1,500,000 $2,000,000 Includes potential transmission lines to sewer system, pump

stattions or other off site improvements needed to leachate

transmission to treatment facility.

SUBTOTAL $14,900,000 $22,200,000

Engineering (15%) $2,235,000 $3,330,000 Final design, construction permitting, bidding, construction phase

services, plats, surveys over life of facility

SUBTOTAL $17,135,000 $25,530,000

Compliance monitoring system $300,000 $500,000 Groundwater wells and gas probes. Dependent on final

configuration.

Liner system - 60 acres $21,000,000 $24,000,000 Range $350,000 - $400,000/acre

SUBTOTAL $21,300,000 $24,500,000

Engineering (15%) $3,195,000 $3,675,000 Permitting, design, bidding, construction phase services, plats,

surveys

SUBTOTAL $24,495,000 $28,175,000

Cap system - 60 acres $9,000,000 $12,000,000 Range $150,000 - $200,000/acre

Engineering (15%) $1,350,000 $1,800,000 Permitting, design, bidding, construction phase services, plats,

surveys

SUBTOTAL $10,350,000 $13,800,000

TOTAL $60,180,000 $79,805,000

INFRASTRUCTURE DEVELOPMENT

LANDFILL CELL DEVELOPMENT

CONCEPTUAL COSTS

LANDFILL CLOSURE

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TABLE 3

REGION 2000 SERVICES AUTHORITY

GENERIC LANDFILL EVALUATION

CONCEPTUAL COST OF SERVICE - financing assumed for construction. Inflation has not been factored in. Landfill life 25 years beginning in 2030/2031.

Annual tonnage 203,000 FY 2018 revenue producing tonnage

ITEM LOWER RANGE UPPER RANGE COMMENTS

DEVELOPMENT COSTSLand purchase and permitting $8,200,000 $12,300,000 Table 2

Infrastructure development $17,135,000 $25,530,000 Table 2

Cell Development (total estimate) $24,495,000 $28,175,000 Table 2

SUBTOTAL $49,830,000 $66,005,000

Contingency (20%) $9,966,000 $13,201,000

TOTAL $59,796,000 $79,206,000

Finance at 4%/25years $3,826,944 $5,069,184 Phasing of development not considered.

OPERATIONS

Operations $3,053,000 $3,053,000 FY 2018 budget exclusive of closure reserve

and debt service

Additional cost for leachate handling $200,000 $300,000 Estimated.

Closure reserve $497,000 $662,000 Cap estimate +engineering +20% /25 years

Post closure care reserve $202,000 $303,000 Current LRLF estimate /25 years; upper range =

lower + 50%

SUBTOTAL $3,952,000 $4,318,000

TOTAL $7,778,944 $9,387,184Cost of Service $38.32 $46.24 Total/Annual Tonnage

CONCEPTUAL COSTS

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5/11/17