Minutes 04/13/2009 - Laserfiche WebLink

Home Browse Search

April 13. 2009 (a) Providing substantial cash flow relief to Portsmouth and its citizens by facilitating the establishment of lower tipping fees than SPSA currently has under consideration, and thus reducing the burdens SPSA will impose on Portsmouth and its citizens; (b) Providing sufficient interim financial stability for SPSA to make an informed decision about various privatization proposals; (c) Ensuring that SPSA can continue to provide service to the Owner Communities under the existing use and support agreements and remain current on its debt service payments; and (d) Providing adequate time to reform the SPSA business model, including time to properly evaluate proposals to change SPSA facility ownership or operations. The City Council further finds that it would be in the best interest of the citizens of Portsmouth for Portsmouth to undertake its respective obligations set forth in the VRA Restructuring and hereby approves such undertaking, subject to certain conditions. Recognizing the pressing need for reform of SPSA and the prevention of further abuses, the City Council makes its support for the VRA Restructuring contingent on the following conditions: 1. All seven other SPSA Owner Communities agreeing to assume their legally binding financial responsibilities, as required by the VRA Restructuring, the VRAPRMC Resolution and the VRA Additional Understandings; with those responsibilities being generally described as general obligation backing for the VRA Restructuring by Portsmouth, Suffolk, Isle of Wight, and Franklin, moral obligation backing for the VRA Restructuring by Southampton, general obligation backing for the Wachovia line of credit by Norfolk and Chesapeake, and Virginia Beach forgoing payment of certain amounts owed to it by SPSA, with repayment to be subordinate to SPSA debt to VRA. 2. The Cosgrove Bill being duly enforced and implemented. 3. SPSA exercising due diligence and good faith in pursuing the transition to a new business model, as described in the Hampton Roads Planning District Commission Solid Waste Study, including the privatization of services and divestiture of assets and making such other managerial and operational reforms as will promote fiscal viability and efficient operations. 4. Portsmouth, or its designated representatives, being permitted full access in all reasonable ways to review SPSA's efforts with regard to privatization, divestiture, and all other conditions stated herein. 5. SPSA not borrowing additional funds other than the VRA Restructuring and credit lines needed for working capital and capital improvements without the approval of Portsmouth City Council and the governing bodies of a majority of other SPSA Owner Communities. This resolution shall take effect immediately." Ayes: Moody, Psimas, Randall, Smith, Whitehurst Nays: Holley The following item was discussed in Public Work Session: 2. Public Schools Stimulus Update - Dr. Stuckwisch On motion, meeting adjourned at 8:25 p.m.