RICHMOND
SPSA officials and several legislators are lobbying Gov. Timothy M. Kaine to give the regional trash authority more time to fix itself before imposing new state oversights.
Meanwhile, a committee of the state's bond bank on Friday recommended approval of a financial rescue plan for SPSA that would involve state and local participation.
The governor is considering a bill approved by the General Assembly that would reform operations at the Southeastern Public Service Authority, including a reorganization of its board by Jan. 1. The governor would appoint SPSA board members based on recommendations from the eight cities and counties served by the agency. Currently, the cities and counties appoint their SPSA board members.
In a March 19 letter sent to Kaine and Del. John Cosgrove, R-Chesapeake, SPSA board Chairman Donald L. Williams asks to delay the reorganization until July 1, 2010, noting that "bringing in a whole new Board will create problems for SPSA" as it addresses ongoing business issues.
Cosgrove, the bill's sponsor, disagrees. Cosgrove said he already "tried to play nice" with SPSA by modifying his bill at the agency's request to provide the January date.
"I don't think giving them another six months is going to fix anything," Cosgrove said this week. "They broke it over 20 years."
Other provisions in Cosgrove's bill would require SPSA to better manage its finances, create a strategic master plan, and have the board approve expenses exceeding $30,000.
As it faces $240 million in debt and declining revenues, there have been concerns that SPSA could lack the money to cover its operating expenses by later this spring.
Since the 1970s, the authority has handled trash and recycling in the cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach, and Southampton and Isle of Wight counties.
Recently, member localities have begun weighing a financial bailout plan that would help rescue SPSA but could mean higher trash collection fees for citizens.
A separate letter heading for Kaine's desk asks him to either delay action on Cosgrove's bill until Jan. 1, 2011, or amend it to strike language that would empower the governor to pick a new board of directors.
Dated March 23, that missive is signed by state Sens. Louise Lucas, D-Portsmouth, and Fred Quayle, R-Suffolk; state Dels. Bill Barlow, D-Isle of Wight County, and Roslyn Tyler,
D-Sussex County; and the chairman of the Isle of Wight County Board of Supervisors, James B. Brown Jr.
"The idea is to give SPSA another opportunity to do whatever it is they have to do to emerge from the crisis," Barlow said.
Part of that involves a plan to restructure SPSA's debt. The plan got the blessing of the Virginia Resources Authority's portfolio risk management committee Friday.
A final vote on that plan by the authority's board could occur at an April 14 meeting.
SPSA may also sell some of its assets as part of the ongoing overhaul, authority spokesman Tom Kreidel said.
Pilot writers Scott Harper and Mike Saewitz contributed to this report.
Julian Walker, (804) 697-1564, julian.walker@pilotonline.com
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New board?
It's about time! When? Sooner the better!
Harvey has a GREAT idea!
If the city & commonwealth actually had lawyers read over EVERY contract to make sure they weren't getting the short end of the stick every time the budget problems for the city & commonwealth might be considerably less. Hold the "contractors" accountable.
Yeah
You other cities need to step up to the plate and pay for VB and Suffolk's waste disposal just like your contracts say you should. The law is the law, you slackers. Next time though, you may want to get a better lawyer to review those contracts. It'll be money well spent. HaHa, I can't resist!
Illusions
Rarely has so much been written without bringing one iota of clarity and understanding to the situation. Cosgove's bill does absolutely nothing to actually solve the problem of the members refusal to pay the fees necessary to cover debt and operations. The new board will be faced with exactly the same dilemma; past board refused to pay tip fees sufficient to reduce principal on the debt, and they still refuse to do so. This short term infusion of cash and agreement to guarantee debt is a shell game; if the cities paid the required tip fees, none of this would be necessary. In fact, the VRS refinancing simply continues the basic tactic that messed up SPSA in the first place; that is, postponing debt payments until later. Regretfully, the Pilot could have been a source of balance and understanding; instead, it has helped to exacerbate the hysteria that has resulted in a bad bill that does absolutely nothing to solve the basic problem.
Hey - why not ELECT them?
I am so tired of taxpayers getting ripped off by all-appointed government. Let's ELECT the prople that plan to tax us - you know, taxation with representation? Better yet, why not use the Free market and have local governments hire private firms to collect and recycle our trash?