Flow ControlImpact on Members, Residents and Businesses of the Region Isle of Wight Board of Supervisors Meeting August 16, 2007 John S. Hadfield, P.E., B.C.E.E. Executive Director, SPSA
Flow Control Defined • Flow control refers to the legal right of localities to control where waste generated within their jurisdictions is taken for disposal
Legal Context & Authorizations • Federal • April 30, 2007 U.S. Supreme Court United Haulers decision • Virginia & Local • Authorized by Virginia Code
Key Groups Affected • SPSA Member Communities • Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach and the Counties of Southampton and Isle of Wight • Residents • Homeowners, condominium owners, and renters • Businesses that use the private sector for waste disposal • Owners, tenants, and property managers • Businesses that use the public sector for waste disposal • Private Haulers • Environmental Community
Pros Fairness in rates Cost of disposal is the same whether the waste is generated by a homeowner, condominium owner, apartment renter, or business owner Eliminates the current financial need to contract for out-of-state solid waste (excluding proprietary waste documents and products)----a policy opposed by a significant number of citizens Reduces costs for member localities (from $100/ton to the mid-$50s per ton) Restores original SPSA business model Cons Administrative and enforcement responsibilities Potential litigation (costs covered by SPSA) Increase in costs of disposal for waste collected from public facilities under contract with private haulers (i.e. – schools and municipal buildings) Impact on SPSA Member Communities
Pros May reduce need to raise the real estate tax Provides members with more disposal options post 2018 Ensures stable revenue and waste stream for SPSA, providing system predictability and adequate fuel supplies to Waste-to-Energy Ensures that SPSA continues to provide an array of environmental and reuse services Cons Impact on SPSA Member Communities (cont.)
Estimated Member Community Financial Impact Notes: 1These figures are estimates only; they are based on a combination of previous tonnages and a $52/ton tipping fee •2The total estimated savings are in constant dollars, through January 2018 •3If SPSA ceases using the Regional Landfill, Suffolk will pay the prevailing municipal tipping fee • 4Savings for Virginia Beach are compared to the City’s capped rate of $53.88 in FY2009; the cap expires July 2015.
Pros Fairness in rates Cost of disposal is the same whether the waste is generated by a homeowner, condominium owner, apartment renter, or business owner Cons Equalizing rates may cause some increases to residents who live in apartments and condominiums served by private waste disposal companies Impact on Residents
Pros Eliminates the current financial need to contract for out-of-state solid waste---a policy opposed by a significant number of citizens May reduce need to raise the real estate tax Cons Impact on Residents
Pros May bring about additional competition for waste collection Will reduce charges in some communities for small businesses that receive solid waste services from their local governments Cons Will cause some increases to businesses who contract out waste disposal to the private sector Impact on Area Businesses
Pros May reduce need to raise the real estate tax Cons Impact on Area Businesses (cont.)
Pros Ensures same rates for all haulers No discernible impact on hauling operations Cons May receive complaints from customers for price increases Eliminates option of disposing of out-of-state waste at SPSA facilities Haulers who own landfills will no longer be able to dispose of the region’s solid waste at their facilities Impact on Private Haulers* *Note: Construction demolition debris and recyclables are not covered under flow control.
Environmental Community • A broad section of the local environmental community has opposed SPSA’s acceptance of out-of-state solid waste. The financial need to accept this waste would be eliminated through the adoption of flow control.
Other Issues • Ensures that all disposal occurs with a public agency that is sensitive to public health and safety concerns, with governance and decision processes that are open to public scrutiny