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R-09-46 A RESOLUTION CONCERNING DISPARATE RATES CHARGED TO DIFFERENT SOUTHEASTERN PUBLIC SERVICE AUTHORITY MEMBERS. WHEREAS, the Southeastern Public Service Authority ("SPSA") is a regional authority that derives its legal existence from the Virginia Water and Waste Authorities Act, Va. Code S 15.2-510 I et seq.), and it is comprised of eight member localities, namely the Cities of Virginia Beach, Norfolk, Chesapeake, Portsmouth, Suffolk, and Franklin, and the Counties of Isle of Wight and Southampton (collectively, the "Members"); and WHEREAS, the Virginia Water and Waste Authorities Act sets out as one fundamental prerequisite to corporate existence that rates for services be "fair and equitable"; and WHEREAS, SPSA has as its primary source of revenue a charge imposed on Members for the municipal solid waste SPSA receives from them, referred to as the "tipping fee"; and WHEREAS, the Use and Support Agreements of six SPSA Members, namely Norfolk, Chesapeake, Portsmouth, Isle of Wight, Franklin, and Southampton, contain no limits on their tipping fees, so that as SPSA's operating expenses go up, the tipping fees charged to those Members go up accordingly, with no limits. These Members will be referred to as the "Full Tipping Fee Members." And WHEREAS, there are two Members whose tipping fees are treated differently, Suffolk and Virginia Beach. Suffolk pays no tipping fees at all. Virginia Beach's tipping fees have a substantial contractual offset, which results in a rate that is currently approximately $53.88 per ton (compared to the current rate of$175 per for the Full Tipping Fee Members). Virginia Beach is the largest generator of municipal solid waste among all the SPSA members, generating approximately 40% of all SPSA waste, and this offset is applied to Virginia Beach's entire volume of municipal waste; and