Supervisors approve resolution regarding SPSA post-2018 agreement

Published 12:08 pm Saturday, March 19, 2016

The Isle of Wight County Board of Supervisors approved and adopted a resolution to authorize execution of the use and support agreement post-2018 between Isle of Wight County and the Southeastern Public Service Authority. All board members were comfortable with the resolution that was presented before them.

County Attorney Mark Popovich gave a presentation to the board regarding the SPSA Use and Support Agreement and what SPSA looks like post-2018. At this point, the SPSA Board has voted to issue a notice with intent to contract with RePower South, a waster disposal service. However, this is could change between now and 2018.

The presentation on the agreement explained the intent, purpose and process; term and termination; SPSA obligations; waste-related provisions; member locality obligations; dispute resolution; special termination provision; and strategic operating plan.

Some of the general aspects of the post-2018 agreement are:

• There will be separate, identical agreements;

• The initial term begins Jan. 25 and lasts for 15 years;

• The agreement renews automatically for an additional 10-year term unless the member provides SPSA with at least 18 months notice that it does not plan to renew;

• The agreement terminates automatically if SPSA dissolves and in addition, a member locality may terminate early (and withdraw form SPSA) by complying with the “Special Termination Provision”;

• SPSA will be obligated to manage, operate and maintain the Disposal System in accordance with a Strategic Operating Plan and applicable law;

• Each Member Locality may deliver Municipal Solid Waste to any Transfer Station within the Disposal System;

• SPSA is prevented from importing out-of-area waste for disposal within the SPSA System or any non-SPSA landfill;

• 100 percent of municipal solid waste will be delivered to SPSA; and

• Member localities will pay disposal system fees and all SPSA members will pay at the same rate so long as they are parties to the Use and Support Agreement.

These are just a few of the items included in the use and support agreement.

The full agreement included several more detailed aspects and conditions.

Popovich also presented on RePower South and what they are all about.

With RePower South, SPSA would haul all municipal solid waste to a newly-developed, privately-financed recycling, recovery and renewable energy facility located in Chesapeake.

The waste-stream processed by RePower would support commodity recycling and advanced Biofuel.

Residual waste would be disposed in the regional landfill.

The guaranteed minimum is 350,000 tons and residual waste would be hauled by a third party to a regional landfill. The net disposal fee based on 2015 dollars would be $16.82 per ton.

At the end of his presentation, Popovitch said that although SPSA would like for them to go ahead and approve the Use and Support Agreement, he felt that they should instead approve a resolution to authorize execution.

He said that as the County’s legal council, he felt there were too many uncertainties to sign the agreement.

These were things like not knowing what was going to happen with RePower South and not knowing what was going to happen with negotiations in terms of the City of Suffolk and the potential host fee.

Popovitch and several of the supervisors noted that Isle of Wight County had done research and received RFP’s from other companies and what SPSA was offering was the best choice.

The price they would be paying is about half of what they currently pay.

Although Chairman Rex Alphin has the authority with the resolution, that was later approved by all supervisors, to move forward and sign the use and support agreement without coming before council again, he stated that he doesn’t plan on doing that.

“My intent is not to sign it without your authority,” Alphin said. “I want to go ahead and give you all that promise.”