Norfolk agency moves to break ties with SPSA

NORFOLK

Like many of the region's trash customers, the city's housing authority has seen huge increases in its garbage pickup costs in recent years.

But unlike most private residents, the agency can do something about it.

This month, housing officials took the first step toward ditching the Southeastern Public Service Authority by soliciting bids from private trash haulers to take over garbage collection at its more than 3,200 households.

The move makes Norfolk's Redevelopment and Housing Authority one of the first - and largest - local organizations to attempt to dismiss the troubled trash agency and its skyrocketing costs.

"This is truly a responsible look at our expenses," said Shurl Montgomery, the housing authority's executive director. "With all the changes going on with SPSA, we have to make sure we're still competitive.

"I think you'll find a lot of folks will be doing this," she said.

The Southeastern Public Service Authority, which handles trash disposal throughout the region, has in the past three years raised its disposal rates on its member cities from $57 to $170 per ton of trash. Municipalities have, in turn, passed those costs onto customers.

Norfolk's housing authority has had a contract for the city to do trash collection - just as it does at private residences - since 1985.

But since early 2008, the authority has seen its bill double, from about $18,000 a month to more than $36,000, said Donna Mills, the director of property management. On top of that, an increase in bulk trash disposal rates has cost an additional $50,000 annually - even as the amount of bulk trash the authority collected has dropped.

The increases have come as federal funding for housing projects has decreased, so authorities have been ordered to make sure they're getting the lowest prices on every service.

"We're looking at everything," Ware said. "This is really just to test the waters and see what other prices and services might be available."

In response to its solicitation, the authority received three bids last week from private trash firms, Mills said. Agency officials are reviewing the bids and will decide in about a month whether a new company will take over garbage collection, she said.

Tom Kreidel, SPSA's spokesman, said he has not heard of any other customer jumping ship from regular municipal service.

"We're sorry to see any customer go, obviously," he said. "But this is more an issue of an issue, really, between the housing authority and the city."

The city shouldn't see a financial hit if it loses the housing authority contract, said Alice Kelly, assistant director of public works. Any loss of income for the city would be matched by less trash to pay SPSA to throw away, she said.

"Obviously, the revenue would go down but the costs for disposal would go down," she said. "We'd prefer for them to stay. But it will not impact us very much."

Even if the housing agency discontinues its use of city pickup, the garbage will probably still go to SPSA's landfill - just at a much lower dumping rate.

While Norfolk city crews are charged $170 a ton to dump trash at SPSA's facilities, private companies are charged $35 a ton, Kreidel said.

Meghan Hoyer, (757) 446-2293, meghan.hoyer@pilotonline.com