1. Region 2000 Solid Waste Management Initiative January 18, 2007 Virginia’s Region 2000 Local Government Council Briefing Region 2000 Solid Waste Management Working Group

2. 1 Prepared by Davenport & Company LLC Opportunity Region 2000 strategic planning initiative of 2002 More effective provision of public services within the Region 2000 community Regional solid waste management as a concept Working Group formed

3. 2 Prepared by Davenport & Company LLC Background  The Working Group efforts represent the following localities: Amherst County Campbell County Nelson County Bedford City Lynchburg City  The Working Group has retained the services of a number of consultants to assist in the development and implementation of a Regional Authority operation. CompanyRole Draper Aden AssociatesConsulting Engineer R.W. Beck, Inc.Implementation Consultant Hefty & Wiley PCAuthority Counsel Davenport & Company LLCFinancial Advisor

4. 3 Prepared by Davenport & Company LLC Efforts to Date Region 2000 Solid Waste Management Study, Summary Report (September 2004) Regional Solid Waste Management Analysis (April 2005) –Private haulers Regional Solid Waste Management Financial, Operational, and Regulatory Analysis (April 2006)

5. 4 Prepared by Davenport & Company LLC Current Status Region 2000 Proof of Concept Regional Landfill Operations Alternative Landfill Evaluation Implementation Schedule and Budget

6. 5 Prepared by Davenport & Company LLC Anticipated Benefits

7. 6 Prepared by Davenport & Company LLC Present Value Benefit of Combined Excess Revenue Disposal and Cost Savings 2008-20122013-20172018-222023-24Total Amherst County$3,548,740$2,122,221$1,818,446$641,380$8,130,786 Campbell County$5,847,647$5,285,418$4,464,794$1,360,652$16,958,511 Nelson County$770,971$704,994$634,211$235,116$2,345,292 City of Bedford$119,662$112,331$101,376$37,582$370,952 City of Lynchburg$3,069,070$1,856,581$2,364,270$804,206$8,094,127 Total$13,356,089$10,081,545$9,383,097$3,078,936$35,899,667

8. 7 Prepared by Davenport & Company LLC Projected Cost per Ton Comparison 5 Year Increments Community Description2008201320182024 Amherst County Regional Entity Disposal Fee$27.31$30.90$34.96$40.54 Status Quo$41.92$38.02$41.70$46.71 Savings$14.61$7.12$6.74$6.17 Campbell County Regional Entity Disposal Fee$23.91$27.05$30.61$35.49 Status Quo$33.36$36.47$39.96$44.70 Savings$9.45$9.42$9.35$9.20 Nelson County Regional Entity Disposal Costs$46.95$51.96$58.30$67.61 Status Quo Disposal Costs$59.25$66.21$74.53$86.43 Savings$12.30$14.25$16.24$18.83 City of Bedford Regional Entity Disposal Costs$85.77$95.34$107.13$124.24 Status Quo Disposal Costs$92.13$102.94$115.89$134.40 Savings$6.36$7.61$8.76$10.16 City of Lynchburg Regional Entity Disposal Fee$23.91$27.05$30.61$35.49 Status Quo$24.64$26.31 Savings$0.73($0.74)

9. 8 Prepared by Davenport & Company LLC Present Value of Disposal Cost Savings 2008-20122013-20172018-222023-24Total Amherst County$1,896,923$726,339$542,554$174,469$3,340,285 Campbell County$1,958,455$1,546,549$1,215,839$408,798$5,129,641 Nelson County$770,971$704,994$634,211$235,116$2,345,292 City of Bedford$119,662$112,331$101,376$37,582$370,952 City of Lynchburg$134,749($777,338)$0 ($642,589) Total$4,880,759$2,312,875$2,493,980$855,967$10,543,581

10. 9 Prepared by Davenport & Company LLC Present Value of Excess Revenue 2008-20122013-20172018-222023-24Total Amherst County$1,651,818$1,395,882$1,275,891$466,910$4,790,501 Campbell County$3,889,192$3,738,869$3,248,955$951,853$11,828,869 City of Lynchburg$2,934,321$2,633,919$2,364,270$804,206$8,736,716 Total$8,475,330$7,768,670$6,889,116$2,222,970$25,356,086

11. 10 Prepared by Davenport & Company LLC Anticipated Benefits Alternative Landfill –Tipping Fee April 2006 Analysis: $23.91 Tipping Fee Amherst Alternative: $24.17 Costs saving remain, even with increased costs Surcharge appropriate Total Estimated Financial Benefit –Remains positive for all –Any final adjustment not expected to alter decision

12. 11 Prepared by Davenport & Company LLC Next Steps and Costs  Fiscal Year 2007: Legal activities related to Authority formation$ 15,000 Engineering & Implementation activities related to:141,400 Staffing-related activities 10,000 Financial Advisor 15,000 FY 2007 Total$ 181,400  By percentage, the distributions and subsequent contributions are as follows: Amherst County17%$ 30,838 Campbell County22%39,908 Nelson County11%19,954 Bedford City9%16,326 Lynchburg City 41% 74,374 Total100%$ 181,400

13. 12 Prepared by Davenport & Company LLC Next Steps and Costs (continued)  Fiscal Year 2008: Legal activities$ 30,000 Additional Engineering & Implementation activities164,500 DEQ permitting fees60,000 Authority staffing expenses 250,000 Financial Advisor45,000 FY 2008 Total$ 549,500  By percentage, the distributions and subsequent contributions are as follows: Amherst County17%$ 93,415 Campbell County22%120,890 Nelson County11%60,445 Bedford City9%49,455 Lynchburg City 41% 225,295 Total100%$ 549,500

14. 13 Prepared by Davenport & Company LLC Next Steps and Costs (continued)  Working Group is requesting a commitment for funding for both FY 2007 and FY 2008.

15. 14 Prepared by Davenport & Company LLC Questions/Comments

16. 15 Prepared by Davenport & Company LLC Per Ton Summary for Each Community Amherst County City of Bedford Campbell County City of Lynchburg Nelson County FY 2008 Tonnage30,3014,03047,932166,40013,602 Original Per Ton Cost from 2006 R. W. Beck Report$23.91 Per Ton Operations Surcharge [1] $2.20 $0.00 Per Ton AUF Equalization Fee [2] $1.20 $0.00 Subtotal $27.31 $23.91 Per Ton Transfer Station and Transportation Cost $0.00 $61.86 $0.00 $23.04 Total $27.31 $85.77 $23.91 $46.95 Status Quo Cost per Ton (FY 2008) $41.92 $92.13 $33.36 $24.64 $59.25 Estimated Financial Benefit Per Ton $14.61 $6.36 $9.45 $0.73 $12.30 Percentage Cost Savings Per Ton34.9%6.9%28.3%2.9%20.8% Annual Value (FY 2008) $442,698 $25,631 $452,957 $121,472 $167,305