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HomeMy WebLinkAboutSoutheastern Port and Service Authority Use and Support Agreement UpdateSoutheastern Public Service Authority Virginia Beach City Council Briefing Thomas Leahy, Chairman Dennis Bagley, Executive Director September 9, 2025 1 2Southeastern Public Service Authority (SPSA) Mission: To provide efficient and environmentally sound solid waste disposal services for its member communities Created five decades ago (1976) by its member localities pursuant to the Virginia Water and Waste Authorities Act Governed by state and federal law/regulation, and by “Use and Support Agreements” between SPSA and the member localities The Use and Support Agreements are the fundamental documents (i.e., the rule book) defining the respective duties and responsibilities of SPSA and its member localities 3Current Use and Support Agreements SPSA entered into identical Use and Support Agreements with all eight member localities, effective January 25, 2018 The initial term of these Agreements ends on June 30, 2027 Each Agreement will renew for ten additional years (June 30, 2037) unless the respective member locality provides SPSA written notice to the contrary by December 31, 2025 SPSA and its member localities have partnered to provide reliable, efficient, and quality solid waste disposal service to our region for forty years The current Use and Support Agreements have served SPSA and its member localities well and without incident 4The Regional Landfill The Regional Landfill was established in the early 1980’s in wetlands that are hydrologically connected to the Great Dismal Swamp Wildlife Refuge After a lengthy, arduous, and costly regulatory process, SPSA recently obtained the state and federal permits for a FINAL build-out of the Regional Landfill Two critical lessons learned from this protracted and grueling gauntlet were: 1) there will be no more additional capacity beyond the final build-out at the Regional Landfill, and 2) any new landfill capacity – if even available – will have extremely high environmental, financial, and political costs IMPORTANT: At current disposal rates, the landfill has a build-out capacity that will last no longer than 2060 5What Happens After 2060? After 2060, waste would have to be hauled to private landfills outside of the SPSA service area Transportation is a major cost center in solid waste disposal Projected disposal cost after the Regional Landfill reaches capacity would exceed $125/ton (in present -day dollars), compared to today’s costs of $67/ton The planning, engineering, property acquisition, permitting, and lawsuits associated with a new, major landfill is a multi- decade undertaking with an uncertain outcome A region without an assured solid waste disposal solution is similar to a region without an assured water supply 6 To Provide Assured Regional Landfill Capacity for SPSA Member Localities Beyond 2060, We Must Reduce the Volume of Waste Being Disposed of at the Landfill 7How Do We Reduce The Volume of Waste Requiring Disposal? In February 2024, SPSA issued a Request for Proposals to provide an Alternative Waste Disposal mechanism SPSA is finalizing negotiations with Commonwealth Sortation to provide a mixed waste sorting facility using AI and robotics to remove recyclables and organics ❑20% of the waste would be recycled ❑30% of the waste (the organics) would be processed by pyrolysis creating Biochar which has many beneficial uses ❑Current blue-can systems only recycle about 6-7% of the waste Alternative Waste Disposal would divert 50% of SPSA’s waste from the Regional Landfill and extend landfill capacity through 2095 8Other Benefits Commonwealth Sortation would invest approximately $200 million in new processing facilities in the region Recycling rate would be contractually guaranteed at 20% After 3 years, landfill diversion rates would increase to a guaranteed minimum of 50% All eight member communities would receive the same services at the same cost The region would secure assured solid waste disposal capacity to nearly the end of the century Commonwealth Sortation can’t be expected to commit $200 million for facilities with a 25-yr life without a corresponding commitment from SPSA and its member localities 9Next Steps (1 of 2) SPSA is asking its member localities to execute an amendment to the Use and Support Agreement that would renew the agreements for 25 years (until June 30, 2052) instead of 10 years The amendment would be effective only if all four of the following actions occur: At least seventy-five percent of SPSA Board members authorize identical amendments to all member locality agreements At least seventy-five percent of SPSA member localities execute the amendment At least seventy-five percent of SPSA Board members authorize a contract with Commonwealth Sortation Both SPSA and Commonwealth Sortation execute the contract 10Next Steps (2 of 2) After the Use and Support Agreement Amendments are executed, the SPSA Board would vote on whether to approve and execute a contract with Commonwealth Sortation and specify the AWD facilities as a “Designated Disposal Mechanism” under SPSA’s Standard Operating Procedures (SOP) A super majority consisting of 12 of the 16 SPSA Board Members is required to approve the contract and the modifications to the SOP There would be a phased “ramp up” of processing capabilities through 2028. Thanks, we’ll take it from here. QUESTIONS/COMMENTS ® Thanks, we’ll take it from here. 11