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<br />AUQust 25. 2009
<br />
<br />09 - 450 - Items Submitted by Council Members
<br />
<br />Motion by Mr. Moody, and seconded by Mr. Whitehurst, to add 2 items to the
<br />agenda, and was adopted by the following vote:
<br />
<br />Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley
<br />Nays: None
<br />
<br />1. Mark Geduldig-Yatrofsky, 2713 Sterling Point Drive, spoke in opposition to this item.
<br />
<br />Motion by Mr. Heretick, and seconded by Mr. Moody, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<br />"RESOLUTION CONCERNING DISPARATE RATES CHARGED TO DIFFERENT
<br />SOUTHEASTERN PUBLIC SERVICE AUTHORITY MEMBERS.
<br />
<br />WHEREAS, the Southeastern Public Service Authority ("SPSA") is a regional
<br />authority that derives its legal existence from the Virginia Water and Waste Authorities
<br />Act, Va. Code S15.2-5101 et seq.), and it is comprised of eight member localities,
<br />namely the Cities of Virginia Beach, Norfolk, Chesapeake, Portsmouth, Suffolk, and
<br />Franklin, and the Counties of Isle of Wight and Southampton (collectively, the
<br />"Members"); and
<br />
<br />WHEREAS, the Virginia Water and Waste Authorities Act sets out as one
<br />fundamental prerequisite to corporate existence that rates for services be "fair and
<br />equitable"; and
<br />
<br />WHEREAS, SPSA has as its primary source of revenue a charge imposed on
<br />Members for the municipal solid waste SPSA receives from them, referred to as the
<br />"tipping fee"; and
<br />
<br />WHEREAS, the Use and Support Agreements of six SPSA Members, namely
<br />Norfolk, Chesapeake, Portsmouth, Isle of Wight, Franklin, and Southampton, contain no
<br />limits on their tipping fees, so that as SPSA's operating expenses go up, the tipping fees
<br />charged to those Members go up accordingly, with no limits. These Members will be
<br />referred to as the "Full Tipping Fee Members." And
<br />
<br />WHEREAS, there are two Members whose tipping fees are treated differently,
<br />Suffolk and Virginia Beach. Suffolk pays no tipping fees at all. Virginia Beach's tipping
<br />fees have a substantial contractual offset, which results in a rate that is currently
<br />approximately $53.88 per ton (compared to the current rate of $175 per for the Full
<br />Tipping Fee Members). Virginia Beach is the largest generator of municipal solid waste
<br />among all the SPSA members, generating approximately 40% of all SPSA waste, and
<br />this offset is applied to Virginia Beach's entire volume of municipal waste; and
<br />WHEREAS, the circumstances present when these contractual arrangements
<br />were entered into several decades ago have materially changed; and
<br />
<br />WHEREAS, because Suffolk pays no tipping fees, each of the Full Tipping Fee
<br />Members, including Portsmouth, must pay a pro rata share of SPSA's operating
<br />expenses that would be paid by Suffolk but for the exemption; and
<br />
<br />WHEREAS, because Virginia Beach's tipping fees are materially reduced, each
<br />of the Full Tipping Fee Members, including Portsmouth, must pay a pro rata share of
<br />SPSA's operating expenses that are attributable to Virginia Beach; and
<br />
<br />WHEREAS, the combined subsidies of the six Full Tipping Fee Members to
<br />Virginia Beach and Suffolk are now in the vicinity of $40,000,000 per year; and
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