Chesapeake council votes to oppose SPSA fee hike

but localities will not pay $245/ton. Period!

Well, not to be obtuse, but the board came to the conclusion about the operation of the RDF/WTE plants that the private sector could operate it more effeciently and effectively, and that is why we are negotiating under the PPEA to sell it to the best bidder. In regard to the recycling operation, the landfill, the transfer stations, and the transportation, we expect to do the same thing, with the objective of ensuring a competitive environment. However, if SPSA defaults before these sales occur, it is our contention that the value of the assets may be less than as part of a functioning system, and our main objective is to pay off all our debt while ensuring a competitive environment with private enterprise operating the assets in which the public has an investment.

Recycling mandated by law but cities can do it themselves. OK, so let them do it themselves in a manner that fits thier budget. My point is really quite simple. Find out how many kilowatts of energy SPSA is generating and how many people it take to do it. then go talk to the private companies doing exactly the same thing and you will find they generate the same kilowatts with half the people. Figure out how much it costs to truck the garbage from transfer stations to the WTE plant or landfill. Divide that by the tons to get a cost per ton. then compare it to what all the private companies are getting it done for and you'll find its about half the cost. Then, go visit the SPSA office at about 3:00 one afternoon. guess what, they've all gone home to beat the traffic. Ok, so maybe they come in early. So drop by in the morning at 8:00. Guess what, they don't come in til around 9:00. Its like the $5000 toliet seat folks. SPSA has been out of control for years and it simply cannot fix itself... If a private company can pay off all the debt and cut our costs in half, I say sell it before they change thier minds.

Clearly, SPSA must cut some more expenses because waste volumes have declined so much. But recycling is mandated by law, and while cities may do that themselves as the Beach does, and as I have advocated on the Board, the cost will still be there. The decision on creating steam for the Navy and electricity for sale into the grid was made decades ago, and there are contracts in place with the Navy that must be met. Again, the increased costs over the life of SPSA are about on par with the change in the CPI; however, as the cap on Virginia Beach's fees has taken effect, the growth in waste volumes in Suffolk, and the court decision to allow commercial waste to go with the market, have conspired to make our method of cost allocation the major problem today.

I understand that SPSA has not been operated most efficiently, but can you explain why exactly SPSA needs a Public Information Officer(PIO) position. It just seems ironic that the regional dump needs a paid propagandist on staff and just how much does the position pay yearly?? I understand that news events occur concerning the organization, but you have a board with 8 members, and 8 alternates, in addition to an "executive director" and I am sure of countless underlings, None of which seem camera shy or short of an opinion.

Chesapeake is absolutely right. Before forcing the member communities to cut "real and important" services like law enforcement, fire, ambulance, etc, they must make sure SPSA has cut itself to the bone. Every analysis that has been done on SPSA shows they are over staffed by at least 35% across the board, they do things themselves that they can get done cheaper by others and they operate programs that are a drain on scarce financial resources with no compelling public good. Recyclign is a great example. It sounds great but does it really do any good? It's generating electricity the most efficient re-use technique around? Let's face it, the staff is not willing to make the changes required and the board is too weak to force them.

Well of course, SPSA has cut employees and expenses, and will continue to do so with a new round of layoffs expected. On the other hand, it must provide the waste disposal resources necessary to meet the requirements of the service contracts with its members, or risk being in breach of those contracts. The members are required by law to set a sufficient tip fee to operate the services and to pay off debt. If Chesapeake's action were to be duplicated by a majority of the members, the board would be in violation of the law, and the bondholders have the power to go into court to require that SPSA impose adequate tip fees as required by the statute. The SPSA board has adopted a strategy to sell assets to reduce debt, and is in a negotiation under the PPEA to sell the RDF/WTE plants subject to a contract with the buyer to sell waste to them at a set price.