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R-01-72
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<br />A RESOLUTION EXPRESSING THE INTENT OF THE CITY OF PORTSMOUTH,
<br />VIRGINIA, TO COMPLY WITH THE TERMS OF A CONTRACT BETWEEN THE
<br />SOUTHEASTERN PUBLIC SERVICE AUTHORITY (SPSA) AND CERTAIN SOLID
<br />WASTE MANAGEMENT COMPANIES OPERATING IN TI-IE SPSA SERVICE AREA.
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<br /> WHEREAS, on June 27, 2001, the Board of Directors ("Board") of the Southeastern
<br />Public Service Authority ("SPSA") authorized the Executive Director of SPSA to enter into a
<br />Contract ("the Contract,") with any solid waste management company operating in any of the cities
<br />of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach and the Counties of
<br />Southampton and Isle of Wight ("Member Communities" and "Service Area",) that can meet and
<br />is willing to comply with its terms;
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<br /> WHEREAS, the price, volume and term provisions of the Contract resulted from months
<br />of negotiations between SPSA and the solid waste management companies operating in the
<br />Service Area;
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<br /> WHEREAS, the Board and Staff of SPSA have agreed to the Contract because they
<br />believe if implemented as established it will, over its term. result in substantial reductions in
<br />SPSA's municipal tip fee rates, will equalize commercial and municipal rates at $42 or less as of
<br />July 1, 2005, and will obtain from the generators of commercial processable solid waste ("CPW")
<br />in the Service Area (1) adequate revenue and (2) sufficient volumes of CPW;
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<br /> WHEREAS, the Contract increases SPSA's rates for contract commercial processable
<br />waste from $16/ton as of June 30, 2001 to $28/ton on August 1, 2001. $33/ton on July 1, 2002,
<br />$38/ton on Jnly 1, 2003, $40/ton on July 1, 2004 and $42/ton on July 1, 2005.
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<br /> WHEREAS, the Staff of the Authority project that as a result of these increases in SPSA's
<br />commercial rates, as well as through continued cost-cutting, operational efficiencies and other
<br />increased revenues, tip fee rates for the Member Communities will drop from a previously
<br />projected $67/ton rate on of July 1, 2001 to an actual rate on July 1, 2001 of $57/ton and that these
<br />measures are likely to cause the municipal tip fee rate to continue to decline to $55/ton on July 1,
<br />2002, $49/ton on July 1, 2003, $44/ton on July 1, 2004 and $42/ton on July 1, 2005.
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<br /> WHEREAS, the equalization of commercial and municipal rates expected to be achieved
<br />as a result of these efforts on July 1, 2005 is a long sought goal of the SPSA Board and its Member
<br />Communities.
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<br /> WHEREAS, the Contract provides that for so long as the Contract is in force and
<br />Contractor has not given SPSA notice of intent to not renew the Contract, SPSA "will not
<br />recommend, encourage or support (i) any Member Jurisdiction's implementation of a waste
<br />Generation or similar fee charged to customers of Contractor for disposal services provided by or
<br />on behalf of that jurisdiction, and (ii) any SPSA Member Jurisdiction franchising the collection of
<br />commercial solid waste within that Jurisdiction or otherwise displacing the collection or disposal
<br />business of Contractor, including, but not limited to, action (including, but not limited to, the
<br />scheduling of a public hearing) pursuant to Virginia Code Section 15.2-930, 15.2-931, and/orl 5.2-
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