Flow Control Impact on Members, Residents and Businesses of the Region

1
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

2
Flow Control Defined

• Flow control refers to the legal right of
  localities to control where waste generated
  within their jurisdictions is taken for disposal

3
Legal Context Authorizations

• Federal
• April 30, 2007 U.S. Supreme Court United Haulers
  decision
• Virginia Local
• Authorized by Virginia Code

4
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

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Impact on SPSA Member Communities

• 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)

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Impact on SPSA Member Communities (cont.)

• 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

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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 Citys capped rate of
53.88 in FY2009 the cap expires July 2015.
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Impact on Residents

• 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

9
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

10
Impact on Area Businesses

• 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

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Impact on Area Businesses (cont.)

• Pros
• May reduce need to raise the real estate tax

• Cons

12
Impact on Private Haulers

• 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 regions solid waste at their
  facilities

Note Construction demolition debris and
recyclables are not covered under flow control.
13
Environmental Community

• A broad section of the local environmental
  community has opposed SPSAs acceptance of
  out-of-state solid waste. The financial need to
  accept this waste would be eliminated through the
  adoption of flow control.

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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

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Questions