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Eliminate Out-of-Area Waste : Flow Control Allows Equalization of Rates : Member Community and Area Residents Impact : Business Community Impact : Flow Control Legal Q&A : History and Background : Contact SPSA
Key Points:
- Makes disposal rates equal and fair to all users
- Eliminates out-of-state waste
- Brings considerable revenue savings for SPSA’s member localities and their residents
- May reduce need to raise real estate taxes
- May bring about additional competition for waste collection
- Is a more transparent process for businesses, which will help them better understand their rates and charges from haulers
- Leaves member localities with more options available after 2018 when their contracts with SPSA expire
- Restores original SPSA business model and treats localities and businesses equally in the cost for disposal of waste
Flow Control Allows Elimination of Out-of-State Waste
- Being considered “the dumping ground” of the state brings a negative image to the region; eliminated out-of-state waste enhances the attractiveness and competitiveness of the region as a business location
- Reduces truck traffic
- Preserves landfill space for the future
Flow Control Allows Equalization of Rates
Member Community and Area Residents Impact
To view the Estimated Member Locality Financial Impact PowerPoint, please click here.
To view the individual member community community briefings, please click on the following:
Business Community Impact
1. Impacts of Flow Control on South Hampton Roads Businesses:
- Homeowners and businesses served by the public for trash collection will see no ($0.00) increase in their trash disposal bills
- SPSA, through R.W. Beck, Inc., has conducted an initial analysis of the financial impact of flow control; this initial analysis shows the impact on those who live in apartments and condominiums will be less then $2 per unit per month--excluding private hauler make-ups
- Varying cost impacts on other businesses
- Additional analytical work is being done with municipality representatives to better understand the impact within each member community. Also, a survey was sent to all area haulers in August since they are the best sources to obtain this financial information. No responses have been received at this time. Finally, there are varying cost impacts on other businesses; numerous activities are underway to help businesses ascertain this information.
2. Your Waste Disposal Bill -
Three components:
- Unit rental (size, type, etc.)
- Collection (frequency of schedule)
- Disposal (amount disposed)
Under flow control, only the disposal component would be affected. Generally waste disposal is only a small business expense as compared to other expenditures.
3. Private Hauler Survey:
- To assess the financial impact of flow control on area businesses, a third-party survey is being conducted
- Haulers - who are best able to provide data on impacts to businesses - have been asked to provide impact on varied businesses
- Independent consultant R.W. Beck, Inc., based in Framingham, Massachusetts, will develop a report based on responses
4. Business Surveys:
- SPSA has received invoices from area businesses in order to assist in providing more definitive information on the impact of flow control.
- In one example, the trash bill per month for a 5500 sq. ft office building in the region is $57.78/month. Under flow control, our initial estimate is that this cost would rise to $78/month. (Please note that under flow control, only the disposal component of a trash bill would be affected. There are at least two other components of most businesses' trash bills - the other components of the trash bill should not increase.)
- This survey approach is a reasonable means to help businesses understand the true impact of flow control. Those interested in this assessment may contact SPSA at (757) 420-4700 in order to assist them in assessing the impact of flow control on their business.
5. Business Recycling:
- Recycling can reduce the cost of waste disposal for businesses
- Reduces volume of trash disposed
- Recycling is positive for business image
- Information is available from SPSA on Virginia restaurants, hotels and other businesses that have cost effectively used recycling services to reduce their waste disposal costs
- SPSA will be exploring opportunities for increasing business recycling through private and/or public programs
- SPSA already provides consultation services on recycling options for waste minimization/recycling
To view the Business Community Briefing PowerPoint, please click here.
Flow Control Legal Q & A
Definition
Flow control refers to the legal right of localities to control where waste generated within their jurisdictions is taken for disposal.
Flow Control Implementation:
- If adopted by all SPSA members, program will equalize the disposal rate paid by members and private trash haulers.
- All regional waste will go to the SPSA Regional Landfill or the Waste-to-Energy Plant
For more information on the legal Q & A, please click here.
To view the Model Flow Control Ordinance, please click here.
History and Background
Prior to 1994, SPSA controlled flow of all waste and generated enough disposal revenue to finance the construction and maintenance of the entire system.
- In 1994, a U.S. Carbone Supreme Court (Carbone) decision ruled flow control unconstitutional.
- This decision resulted in a first year drop of 39% in commercial waste.
- Since then, SPSA members have absorbed these continual revenue losses through annual SPSA tipping fee increases
In 2007, the Supreme Court reversed its earlier 1994 flow control decision for localities that direct waste to a publicly owned facility.
- Decision affords many localities, including SPSA members, the ability to restore the original financing model with flow control.
- Also authorized by Virginia Code.
- Use and Support Agreements - Allow SPSA members to meet contractual obligations established under use and support agreements.
Contact SPSA regarding Flow Control
For more information contact SPSA at (757) 420-4700.
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