|
October 23, 2001
<br />
<br />Purpose and Need:
<br />
<br />· The Board of Director's of the Southeastern Public Service Authority (SPSA) was
<br />authorized to enter into a contract with any solid waste management company operating
<br />in the SPSA service area. This contract will result in substantial reductions in the
<br />municipal tipping fee rates.
<br />
<br />· One of the major components of the contract with the private waste haulers is that
<br />SPSA will not encourage or support any member jurisdiction's implementation of a
<br />waste generation fee or action to franchise waste collection.
<br />
<br />· SPSA's contract with the private waste haulers is contingent on the cities of
<br />Portsmouth, Norfolk, Chesapeake and Virginia Beach adopting such a resolution.
<br />Failure to adopt the resolution could result in the private waste haulers terminating their
<br />contract with SPSA.
<br />
<br />Financial Impact:
<br />
<br />· With anticipated adoption of the resolution and implementation of a new contract
<br />with the private waste companies, the municipal tipping fee was set at $57 per ton
<br />effective July 1, 2001. Without the new contract the projected municipal tipping fee was
<br />$67 per ton for FY 2001-2002.
<br />
<br />· With implementation of SPSA's contract with the private waste haulers, further
<br />reductions in disposal costs are expected in subsequent years.
<br />
<br /> Motion by Mr. Whitehurst, and seconded by Mr. Pitts, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<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 THE SPSA SERVICE AREA.
<br />
<br /> WHEREAS, on June 27, 2001, the Board of Directors ("Board") of the
<br />Southeastern Public Service Authority ("SPSA") authorized the Executive Director of
<br />SPSA to enter into a Contract ("the Contract,") with any solid waste management
<br />company operating in any of the cities of Chesapeake, Franklin, Norfolk, Portsmouth,
<br />Suffolk and Virginia Beach and the Counties of Southampton and Isle of Wight
<br />("Member Communities" and "Service Area",) that can meet and is willing to comply with
<br />its terms;
<br />
<br /> WHEREAS, the price, volume and term provisions of the Contract resulted from
<br />months of negotiations between SPSA and the solid waste management companies
<br />operating in the Service Area;
<br />
<br /> WHEREAS, the Board and Staff of SPSA have agreed to the Contract because
<br />they believe if implemented as established it will, over its term, result in substantial
<br />reductions in SPSA's municipal tip fee rates, will equalize commercial and municipal
<br />rates at $42 or less as of July 1, 2005, and will obtain from the generators of
<br />commercial processable solid waste ("CPW") in the Service Area (1) adequate revenue
<br />and (2) sufficient volumes of CPW;
<br />
<br /> WHEREAS, the Contract increases SPSA's rates for contract commercial
<br />processable waste from $16/ton as of June 30, 2001 to $28/ton on August 1,2001.
<br />$33/ton on July 1,2002, $38/ton on July 1, 2003, $40/ton on July 1,2004 and $42/ton
<br />on July 1, 2005.
<br />
<br /> WHEREAS, the Staff of the Authority project that as a result of these increases in
<br />SPSA's commercial rates, as well as through continued cost-cutting, operational
<br />efficiencies and other increased revenues, tip fee rates for the Member Communities
<br />will drop from a previously projected $67/ton rate on of July 1, 2001 to an actual rate on
<br />July 1, 2001 of $57/ton and that these measures are likely to cause the municipal tip fee
<br />rate to continue to decline to $55/ton on July 1, 2002, $49/ton on July 1, 2003, $44/ton
<br />on July 1, 2004 and $42/ton on July 1, 2005.
<br />
<br />
<br />
|