The Virginian-Pilot
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The deputy director of SPSA, W. Lewis "Louie" Jordan, the No. 2 man at the troubled regional waste authority since 1997, has lost his job.
Friday was his last day, though Jordan has been on leave since last week, according to a spokesman for the Southeastern Public Service Authority.
"His position has been eliminated and will not be filled," said SPSA spokesman Tom Kreidel.
Friday also was the last day for Chuck Harrell, SPSA's superintendent of the regional landfill in Suffolk. Harrell resigned, Kreidel said, and the agency is discussing whether to fill his post.
The landfill director before Harrell was fired two years ago over a contracting dispute.
The departures Friday are the latest in a steady stream of retirements, resignations and exits by SPSA's top managers, a trend that began about two years ago in the wake of heavy debts, complaints of mismanagement, lawsuits, media scrutiny, and calls for cost-cutting reform.
The current head of SPSA, Bucky Taylor, took over the top spot in August, after longtime Executive Director John Hadfield retired.
Also gone are Glenn McGrath, the former human resources director, who took an early-retirement buyout last year; Dan Miles, former director of operations, who left for a waste-management job near Roanoke; Felicia Walker Blow, the former director of public information, who resigned last year; Debra Devine, former recycling director, who took a buyout last year; and Steve Herborn, former director of information technology, who was fired.
Only two executives remain at work since SPSA's controversies began being aired publicly in 2006 - Walt Hunter, director of finances; and Richard Cheliras, director of waste-to-energy.
Overall, the waste agency that serves eight cities and counties in South Hampton Roads has seen its work force dwindle in recent years, in part because of an early-retirement program in 2007, which 31 staffers opted for.
As of Friday, SPSA employed 455 people. That's down from 468 last year, 462 in 2007, and 492 in 2006, according to agency statistics. At its peak, SPSA had more than 500 people on its payroll.
About 40 percent of all SPSA employees work at the waste-to-energy power plant in Portsmouth, which converts garbage into electricity and steam. The plant is up for sale, with two private companies bidding for it, as SPSA tries to reinvent itself as a leaner operation.
A financial audit comparing 2008 with 2007, published in November, said SPSA had cut its employee "compensation and related payroll costs" by $1.7 million.
The agency today is about $230 million in debt and faces a $16 million deficit this budget year.
As deputy director, Jordan was the primary business contact, a deal-maker known for his humor and gregarious nature. He pushed SPSA onto thin ice at times, signing a contract three years ago with a private company for construction debris that led to an antitrust suit.
While SPSA ultimately prevailed in that suit, it went to the Virginia Supreme Court and cost the agency hundreds of thousands of dollars in legal bills and much negative publicity.
Jordan was earning $135,574 at the time of his departure Friday, according to SPSA. He is entitled to a severance package of 11 weeks of pay - one week for each year at the agency.
Attempts to contact him by phone at his home and office Friday were unsuccessful.
Scott Harper, (757) 446-2340, scott.harper@pilotonline.com
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Wrong facts about subcontracting
You can't judge a book by its cover... The truth is it costs about 30% more to pay a subcontractor to haul the waste. Look at all all the number associated with this and you will see that the surface numbers you are looking using are not accurate.
The plant in Connecticut that you refer to is not an "RDF plant" it is a "Mass Burn". Let's compare apples to apples. I agree that this system needs some fixing but, let's keep to the facts.
Basic Agreement
Well Burt, I can't really disagree with most of your points, although I do think that the degree on inefficiency built into this public system is much less than you charge. That said, there are some operating inefficiencies, and that is why we have embarked upon a strategy to sell assets to the private sector with operating agreements to allow SPSA to meet its obligations through the contract period. Then, if no regional agency supercedes SPSA, then at least these assets built with public money will be available to the members and to the business and commercial sector in the region. The cities will also have to accept the fact that some of the inefficiency is a result of their requirements; that is, the number of transfer stations can likely be halved, but that will increase member costs to haul to the transfer station. Thank you for your interest and insight on this matter.
HOW MANY EMPLOYEES???
The amazing part of this article is the number of SPSA employees 455!!!. A private company operating this system would do it with half that number, maybe less. 40% of those people work at the RDF-WTE. That's 182 people!!! A plant in Connecticut that is twice as large only takes 110 people... Mr Barrett, how many dollars did SPSA save when it subcontracted a portion of the trucking work? 30% rings a bell. The question is, why didn't you subcontract all the rest? The Members failed, the management failed but most of all, the Board failed. Its time to bundle up the whole mess and sell it to some people with expertise and a profit incentive. They'll get the job done and the members can concentrate on more pressinbg matters like TRANSPORTATION!!!
I just don't understand how any of these Board members can continue to try and save this floundering giant. If I had been a part of this collosal failure I would have tucked my tail and gone home in shame long ago. When you fail this bad, its time to resign and let someone else clean up the mess. What SPSA needs is a corporate turn around expert. Sure that person would slash and burn and a bunch of people would hit the streets but it would b
Getting the 8 cities to work together is like herding cats
6 of the 8 communities served by SPSA pay the current rate to dispose MSW at SPSA owned facilities. Suffolk pays no fee because the landfill (owned by SPSA) is located there and Va Beach pays a capped fee. If the proposed fee ($245) was evenly distributed across the board it would only be in the $165-$190 range which would be much better for all the communities but because there is absolutely NO cooperation amongst the city governments to really do what is best for all the citizenry of Hampton Roads it will never happen. What politician (which all of the appointed SPSA board members are except Mike Barret) will risk not getting re-elected to vote for what would cost there constituents more money? Why do you think Suffolk and Va Beach always vote yes to increased tipping fees? It does not effect them why shouldn't they? It is time for the other 6 communities to pressure the two others that generate nearly half of the waste to pay there share. There is no such thing as a free ride, unless of course you live in Suffolk.
Yes, renegotiation
Yes, the answer is renegotiation of the Use and Support Agreements. SPSA cannot do that; only the members can do that. Ironically, the proposal from ReEnergy requires that the members negate their existing contracts with SPSA and sign new ones with ReEnergy, requiring new terms of twenty to thirty years, and a new method of parcelling out the costs. What I have suggested is that the eight participating jurisdictions need to meet to discuss a negotiated solution along the lines of the just completed SCS/CAO report which emphasized the value the public has created in facilities such as the landfill, the transfer stations, the RDF plant, the WTE plant, and the transportation network. But if this is to occur, those who will gain from relief from their existing agreements will need to offer some advantage to those who will lose. As I said, a renegotiation, not a power play.
Bailout?
Bailout, Emily a bailout isn’t what it would take to solve this problem. It would only be a temporary fix. There have been way to many temporary fixes over the years. The member communities do have options to bring the tip fees in line for all. Will they do what is necessary to achieve this and save the asset that belongs to the taxpayers of the member communities or will they sit back and wait till it’s to late. If you think an extra dollar or so is going to be to great of a burden to pay, say nothing to your city councils and wait till the solution is to have your trash disposal bundled into one all inclusive privatized process. Please talk to some of the folks in New York and New Jersey, ask what they pay . Think that cant happen here? It’s on the way , unless the average taxpayer gets the word to their leaders.
OK MR. BARRETT, NOW IS YOUR CHANCE
This morning you said the answer to the SPSA problem is "re-negotiation." Then this afternoon you seem to cloud that by saying SPSA can't require changes in the contracts... doesn't the word "re-negotiation" imply change?
Will you, as the VB representative to SPSA, agree to offer "re-negotiation" by VB?
A simple yes or no would be appreciated. No excuses, no blather, just yes or no.
Research
And while you are at it, please correct your misperception about disposal costs. The charge for waste management in cities which pass through their costs as fees is comprised of the fee for collection, which in the cities is done by city forces, and for disposal, which includes picking up the waste from the transfer station, operated by SPSA, and transporting the waste to the appropriate disposal site, which is either the Refuse Derived Fuel plant, or the Landfill. If SPSA tip fees must go up in order to pay the cost of operations and debt service, that will only apply to the disposal charge, not the collection charge. For commercial users, collection is done by private contractors, and they pay negotiated rates to SPSA. When SPSA defaults, there will be very limited transfer station capacity and not enough trucks or personnel to transport waste to distant landfills. Stand by for major disruption.
Same tactic over and over again
Well again, as you know, the locus of renegotiation must be the individual cities/counties; the SPSA board has absolutely no authority to abrogate legal agreemeents forged with the members. In fact, if we did so, each member would be released from their contract with SPSA. In regard to increased fees, let us put this in perspective; we are talking dollars and cents, not tens nor hundreds of dollars. Further, you talk of revolt; that has already occured when Chesapeake sued SPSA and has continued to this day as they complained about the proposed tip fee and required the vote on the new fees to be delayed. And regretfully, the history of SPSA has been marked by a reluctance of the members to pay fees necessary to cover operations, debt, and a margin of safety. That's why we are in the situation today, and why the effort to use a line of credit, and refinancing, is simply a perpetuation of the same tactic.
RE-NEGOTIATE THEN...
if the answer is to re-negotiate, then please begin to do so immediately.
You have challenged me to do some further research, which I plan to do this week.
HOWEVER, many of us could face a doubling of our household trash fee in the next few weeks because of the tip fee increase. The six paying cities have to absorb the hit or charge each household for the lack of will by SPSA to find solutions other than increased charges. I pay a considerable amount now and doubling my bill will be very difficult for me. What's the alternative for my neighborhood-more taxes or higher fees? My neighbors are worried about their jobs, cuts in school budgets and how to afford basic needs. Now we have to face doubled trash fees?
Portsmouth has now joined Chesapeake in its objections. Who will be next? What will you do when all six cities come to their collective senses because us fee strapped taxpayers finally revolt?
Let's equate this to the contracts between the UAW and the Auto companies. Both are making concessions to stay alive. Stop looking for bailouts AGAIN.