FRANKLIN
City Attorney and Southeastern Public Service Authority Board Member Taylor Williams gave a presentation to Franklin City Council regarding SPSA’s Post-2018 Use and Support Agreement. After the presentation was complete, the floor was opened for public comment.

The current SPSA Use and Support Agreement expires Jan. 24, 2018. However, the City must decide in the coming weeks if they will enter into another agreement with SPSA Post-January 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 presentation that includes several other detailed aspects of the agreement can be found on the City of Franklin website under the agenda section, http://www.franklinva.com/media/56561/final-agenda-march-14-2016.pdf.

Williams also presented on the three different proposals that were presented to the SPSA board for the post-2018 waste disposal services. The proposals received by the board were from RePower South, Republic Services and Wheelabrator Technologies.

He said that at the board most recent meeting, they had voted to issue with intent to contract with RePower South.

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.

A more detailed overview on RePower South and the other two proposals the board received can also be found on the City website under the agendas section.

When a time for public comment was opened up after the presentation was complete, it was asked that the comments only be made on the use and support agreement, not on the proposals. Several questions and comments were made regarding the use and support agreement throughout the presentation and when the public comment section was opened up.

“What are the benefits of being a member of SPSA instead of doing something else?”councilwoman Mary Hilliard asked.

Williams answered in saying that going forward everybody would have the same tipping fee and the benefit process would be much more efficient. Councilman Barry Cheatham later on added that Isle of Wight County had went out and gotten some other bids besides SPSA, and none of them came close to what SPSA had put together.

“Are they prepared [RePower South] … in your opinion to accommodate us?” Greg McLemore? Williams answered that they were, as their minimum tonnage is 350,000 tons, but they can hold more than that. Cheatham brought up proposed good neighbor agreement, as that had been addressed the entire night. Williams stated he was not prepared to address any question regarding that. However, Cheatham added that if the City of Franklin needed to make sure the City of Suffolk did not get another free contract and if they did, he would want to get out of SPSA.

“I do not want them to have a free-contract,” Cheatham said. “I don’t need another $132 million dance.”

The only citizen to speak up during public comment was Linwood Johnson.

“One of my concerns is … after we go into a SPSA deal with SPSA, we have not authority for the rate, the cost, the tipping fees,” Johnson said. “I think if we are going to enter into any agreement with any company, the citizens should have the right to speak about what the rates would be with those type of companies. We don’t need to go into a long contract and then pay a fee to get out of those contracts

We need to have something set up in the beginning to protect our citizens. I feel we should look at another option.”

City Council has until the middle of April to decide what they want to do about SPSA and the Post-2018 Use and Support Agreement. The matter will be discussed more at the next meeting.

 

By REBECCA CHAPPELLSTAFF WRITERrebecca.chappell@tidewaternews.comFRANKLINCity Attorney and Southeastern Public Service Authority Board Member Taylor Williams gave a presentation to Franklin City Council regarding SPSA’s Post-2018 Use and Support Agreement. After the presentation was complete, the floor was opened for public comment.The current SPSA Use and Support Agreement expires Jan. 24, 2018. However, the City must decide in the coming weeks if they will enter into another agreement with SPSA Post-January 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 presentation that includes several other detailed aspects of the agreement can be found on the City of Franklin website under the agenda section, http://www.franklinva.com/media/56561/final-agenda-march-14-2016.pdf.Williams also presented on the three different proposals that were presented to the SPSA board for the post-2018 waste disposal services. The proposals received by the board were from RePower South, Republic Services and Wheelabrator Technologies. He said that at the board most recent meeting, they had voted to issue with intent to contract with RePower South.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.A more detailed overview on RePower South and the other two proposals the board received can also be found on the City website under the agendas section.When a time for public comment was opened up after the presentation was complete, it was asked that the comments only be made on the use and support agreement, not on the proposals. Several questions and comments were made regarding the use and support agreement throughout the presentation and when the public comment section was opened up. “What are the benefits of being a member of SPSA instead of doing something else?”councilwoman Mary Hilliard asked.Williams answered in saying that going forward everybody would have the same tipping fee and the benefit process would be much more efficient. Councilman Barry Cheatham later on added that Isle of Wight County had went out and gotten some other bids besides SPSA, and none of them came close to what SPSA had put together.“Are they prepared [RePower South] … in your opinion to accommodate us?” Greg McLemore? Williams answered that they were, as their minimum tonnage is 350,000 tons, but they can hold more than that. Cheatham brought up proposed good neighbor agreement, as that had been addressed the entire night. Williams stated he was not prepared to address any question regarding that. However, Cheatham added that if the City of Franklin needed to make sure the City of Suffolk did not get another free contract and if they did, he would want to get out of SPSA. “I do not want them to have a free-contract,” Cheatham said. “I don’t need another $132 million dance.”The only citizen to speak up during public comment was Linwood Johnson. “One of my concerns is … after we go into a SPSA deal with SPSA, we have not authority for the rate, the cost, the tipping fees,” Johnson said. “I think if we are going to enter into any agreement with any company, the citizens should have the right to speak about what the rates would be with those type of companies. We don’t need to go into a long contract and then pay a fee to get out of those contracts We need to have something set up in the beginning to protect our citizens. I feel we should look at another option.”City Council has until the middle of April to decide what they want to do about SPSA and the Post-2018 Use and Support Agreement. The matter will be discussed more at the next meeting.