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<br />AUQust 25. 2009 <br /> <br />WHEREAS, the effective exemption of Virginia Beach and Suffolk from paying <br />their actual costs of waste disposal by SPSA is the single largest contributing cause to <br />SPSA's present fiscal crisis, and it is also the single largest contributing cause of the <br />SPSA debt crisis by which SPSA is approximately $240,000,000 in debt with only nine <br />years to amortize that debt; and <br /> <br />WHEREAS, if Virginia Beach and Suffolk were to pay tipping fees or rates equal <br />to those charged to other SPSA members, then SPSA's debt could be entirely retired in <br />approximately six years without increasing tipping fees; and <br /> <br />WHEREAS, the net effect of the Virginia Beach and Suffolk contractual <br />arrangements is that the citizens of Portsmouth, which has a population of <br />approximately 100,000 and a median household income of $44,374, are subsidizing the <br />municipal solid waste costs of both Virginia Beach, which has a population of <br />approximately 435,000 and a median household income of $61,462, and Suffolk, which <br />has a population of approximately 81,000 and a median household income of $59,417; <br />and <br /> <br />WHEREAS, there are certain proposals to partly privatize SPSA through a sale <br />of certain of SPSA's assets, but several of these proposals will do nothing to correct the <br />inequities of these disparate rates charged to different SPSA members; and <br /> <br />WHEREAS, there has never been full and forthright public consideration of <br />having SPSA adopt fair and equitable rates so that all SPSA members pay the same <br />fee for treatment of municipal waste; <br /> <br />NOW, THEREFORE, BE IT RESOLVED by the Council of the City of <br />Portsmouth, Virginia: <br /> <br />1. That SPSA is hereby called upon to open a public discussion of the merits of <br />adopting fair and equitable rates among all SPSA members, as required by the Virginia <br />Water and Waste Authorities Act. <br /> <br />2. That SPSA is further called upon to enter into negotiations with Virginia Beach <br />and Suffolk about adopting fair and equitable rates for all SPSA members. <br /> <br />3. This resolution shall take effect immediately upon its adoption." <br /> <br />Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley <br />Nays: None <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 NEGOTIATIONS BETWEEN THE SOUTHEASTERN <br />PUBLIC SERVICE AUTHORITY AND ReENERGY. <br /> <br />WHEREAS, Portsmouth City Council did on January 27, 2009 adopt Resolution <br />No. R-09-03, calling on the Southeastern Public Service Authority ("SPSA") to give good <br />faith consideration to all proposals for partial or complete privatization of SPSA; and <br />WHEREAS, SPSA has been giving good faith consideration to offers previously <br />received from the private waste management companies Wheelebrator and Covanta; <br />and <br /> <br />WHEREAS, SPSA has recently received an additional privatization offer from a <br />third private waste management company, ReEnergy; and <br /> <br />WHEREAS, state law (the "Cosgrove Bill," Va. Code S15.2-51 02.1) requires <br />SPSA to accept and review any qualifying proposals that potentially reduce costs; and <br />