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March 17th, 2016 Full AgendaA Community of Choice, Committed to Excellence Agenda Board of Supervisors Isle of Wight County March 17, 2016 1. Call to Order (5:00 p.m.) 2. Closed Meeting 3. Invocation – The Honorable Rex W. Alphin/Pledge of Allegiance (6:00 p.m.) 4. Approval of Agenda 5. Citizens’ Comments 6. Consent Agenda A. Resolution - Volunteer Recognition Week B. Resolution - Designate April as Clean Rivers Month C. Motion - Authorize the Interim County Administrator to Sign Contracts for the 2016 County Fair and Special Events D. Resolution - Accept and Appropriate Technology Trust Funds (TTF) in the Amount of Seven Thousand Dollars ($7,000) to Automate Land Records and Provide Secure Remote Access to Land Records E. Resolution - Accept and Appropriate Funding in the Amount of One Thousand Nine Hundred and Twenty-two Dollars ($1,922) from VACORP Risk Management for Repairs to a County Vehicle F. January 21, 2016 Regular Meeting Minutes A Community of Choice, Committed to Excellence G. February 4, 2016 Special Meeting Minutes H. February 18, 2016 Regular Meeting Minutes 7. Regional & Inter-Governmental Reports 8. Appointments 9. Special Presentations/Appearances A. Special Presentation - Historic Garden Week Tour B. Special Presentation - Agricultural Update C. Special Presentation - Sustainable Water Recycling 10. Public Hearing Conveyance of Well Lot to Benns United Methodist Church 11. County Administrator’s Report A. Staff Report - Convenience Center Schedule B. Staff Report - 2015 Department of Emergency Services Annual Report C. Staff Report - Legislative Update D. Matters for the Board’s Information 1. Monthly Reports: Tax Levies & Collections as of February 2016; Cash Position; and, Statement of the Treasurer’s Accountability 2. Isle of Wight County Monthly Fire/Emergency Medical Services (EMS) Report – Incidents by Zone 3. Isle of Wight Website Statistics/February 2016 A Community of Choice, Committed to Excellence 4. Solid Waste Division Litter Pickup 5. Isle of Wight Extension Report/February 2016 6. Board of Zoning Appeals (BZA)/2015 Annual Report 7. Wetlands Board/2015 Annual Report 8. Stormwater Local Assistance Fund (SLAF) Grant 12. Unfinished/Old Business A. Staff Report - Unpaved Roads Policy B. Resolution - Authorize Execution of the Agreement for Use and Support of a Solid Waste Disposal System By and Between Isle of Wight County and the Southeastern Public Service Authority (SPSA) C. Staff Report - Request for Proposal (RFP) to Identify Water Using Industries 13. New Business A. Motion - Route 10 Request for Proposals (RFP) for Preliminary Engineering Report B. Motion - Authorize Survey Work for Lawnes Point Waterline Extension C. Motion - Set Meeting Dates for a Public Hearing and Work Sessions for the Proposed FY2016-17 Operating and Capital Budget and Related Ordinance and Resolutions 14. Adjournment March 19,2015/asc/Volunteer Recognition Week ISSUE: Resolution - Volunteer Recognition Week BACKGROUND: Each year, a week during the month of April is designated as Volunteer Recognition Week throughout the nation and in Isle of Wight County. This year, April 10-16, 2016 is designated as Volunteer Recognition Week. While Isle of Wight County has many individual volunteers that provide service to the citizens of the County, we would like to make special note of the services provided by our volunteer fire and emergency service providers. RECOMMENDATION: Adopt a resolution to designate April 10-16, 2016 as Volunteer Recognition Week in Isle of Wight County. ATTACHMENTS: Resolution RESOLUTION TO DESIGNATE APRIL 10-16, 2016 AS VOLUNTEER RECOGNITION WEEK WHEREAS, we are a nation that was founded by individuals who have dedicated their lives, energies and resources to making this a better world for themselves, their families and their neighbors; and, WHEREAS, volunteerism directly reflects the democratic principles upon which this nation was founded in that everyone, regardless of their circumstances, race, age, sex, color or creed can volunteer; and, WHEREAS, the number of individuals engaging in volunteer work and the important variety of services provided increase each year, providing challenges and fulfillment, rich rewards from helping others, improved skills and expansion of one's horizons; and, WHEREAS, Isle of Wight County would like to convey special recognition to the volunteer members of the seven volunteer fire and rescue departments (Carrollton Volunteer Fire Department, Carrsville Volunteer Fire Department, Isle of Wight Volunteer Rescue Squad, Rushmere Volunteer Fire Department, Smithfield Volunteer Fire Department, Windsor Volunteer Fire Department and Windsor Volunteer Rescue Squad) operating in Isle of Wight County who are responsible for saving numerous lives and multiple properties, often exposing themselves to physical risks; and, WHEREAS, it is appropriate to recognize and to honor the numerous contributions of the many volunteers, with special emphasis placed on the fire and rescue volunteers, serving the County of Isle of Wight, as well as this Commonwealth of Virginia and to join in with State and national leaders to set a special time for such recognition. NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the Board of Supervisors of the County of Isle of Wight, Virginia that the week of April 10-16, 2016 be designated as Volunteer Recognition Week. Adopted this 17th day of March, 2016. Rex. W. Alphin, Chairman ______________________________ Carey Mills Storm, Clerk Approved as to form: ______________________________ Mark C. Popovich, County Attorney ISSUE: Resolution – Designate April as Clean Rivers Month BACKGROUND: The Blackwater/Nottoway Riverkeeper Program is requesting the Board’s consideration of designating the entire month of April 2016 as Clean Rivers Month. The Riverkeeper Program is encouraging the community to pick up litter, trash and other items along the Blackwater and Nottoway Rivers, in streams and ditches, parking lots and the front/back yards of our respective homes. RECOMMENDATION: Adopt a resolution. ATTACHMENTS: - Resolution - Correspondence from Blackwater/Nottoway Riverkeeper Program RESOLUTION TO DESIGNATE APRIL 2016 AS CLEAN RIVERS MONTH WHEREAS, the Blackwater/Nottoway Riverkeeper Program (BNRP) dedicated to protecting the Blackwater and Nottoway Rivers and educating the community relative to protection of its environmental resources; and, WHEREAS, to date, the BNRP has removed over 89,000 pounds of trash from in and around the Blackwater and Nottoway Rivers; and, WHEREAS, the BNRP is encouraging individuals and teams to participate in an effort to clean up our rivers, streams and ditches, parking lots, front/back yards by picking up litter, trash and other items; and, WHEREAS, the Board of Supervisors desires to designate the month of April 2016 as Clean Rivers Month. NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the Board of Supervisors of the County of Isle of Wight, Virginia that the month of April 2016 be designated as Clean Rivers Month. Adopted this 17th day of March, 2016. ____________________________ Rex W. Alphin, Chairman _______________________________ Carey Mills Storm, Clerk Approved as to form: _______________________________ Mark C. Popovich, County Attorney ISSUE: Motion - Authorize the Interim County Administrator to Sign Contracts for the 2016 County Fair and Special Events BACKGROUND: Planning efforts for the 2016 County Fair and other entertainment programs has begun. As in previous years, in order to secure first-rate entertainment for the event, fireworks vendors, etc., staff will need authorization to secure acts/vendors prior to the end of the current fiscal year. The request for authorization is being presented with the following assumptions: - The County will hold a County Fair in 2016; - The Operating Budget will have funding for the County Fair - Parks and Recreation is not expected to exceed the total FY2016-17 funding allocation for the County Fair - The County will hold the annual July 4th fireworks display Generally, contracts for entertainment should be signed in the spring. BUDGETARY IMPACT: The impact will be to the FY2016-17 Operating Budget in an amount not to exceed the level of funding received for the total Fair and Special Events Budget. RECOMMENDATION: Authorize the Interim County Administrator to enter into contracts for the 2016 Fair and Special Events. ATTACHMENT: None March 17, 2016/MWT ISSUE: Resolution - Accept and Appropriate Technology Trust Funds (TTF) in the Amount of Seven Thousand Dollars ($7,000) to Automate Land Records and Provide Secure Remote Access to Land Records BACKGROUND: A primary purpose of the Technology Trust Fund (TTF) fee is to generate funds for Clerks of Circuit Court to automate land records and provide secure remote access to land records. Clerks of Circuit Court make annual budget requests to the State Compensation Board for technology equipment and services and the Compensation Board is responsible for allocation of Technology Trust Funds (TTF) monies. BUDGETARY IMPACT: Acceptance of the Technology Trust Funds (TTF) will increase revenues and expenditures of the FY 2015-16 General Operating Budget by the amount of funding received. RECOMMENDATION: Adopt the attached resolution to accept and appropriate Technology Trust Funds (TTF) in the amount of seven thousand dollars ($7,000) for the purpose of automating land records and providing secure remote access to land records. ATTACHMENT: Resolution RESOLUTION TO ACCEPT AND APPROPRIATE TECHNOLOGY TRUST FUNDS (TTF) TO AUTOMATE LAND RECORDS AND PROVIDE SECURE REMOTE ACCESS TO LAND RECORDS WHEREAS, the Virginia Compensation Board is responsible for the allocation of Technology Trust Fund (TTF) monies; and, WHEREAS, Technology improvements of land records, including the provision of secure remote access of electronic land records is a priority of the Technology Trust Fund (TTF); and, WHEREAS, an allocation of Technology Trust Funds (TTF) in the amount of seven thousand dollars ($7,000) from the Virginia Compensation Board needs to be accepted and appropriated to the FY2015-16 Operating Budget of the County of Isle of Wight. NOW THEREFORE, BE IT AND IT IS HEREBY RESOLVED that the Board of Supervisors of Isle of Wight County, Virginia, that seven thousand dollars ($7,000) or so much as shall be received from Virginia Compensation Board be appropriated to the FY 2015-16 Operating Budget of the County of Isle of Wight, Virginia. BE IT FURTHER RESOLVED that the Interim County Administrator of Isle of Wight County is authorized by the Board of Supervisors to make the appropriate accounting adjustments and to do all things necessary to give this resolution effect. Adopted this 17th day of March, 2016. Rex W. Alphin, Chairman _____________________________ Carey Mills Storm, Clerk Approved as to form: Mark C. Popovich, County Attorney March 17, 2016/MWT ISSUE: Resolution - Accept and Appropriate Funding in the Amount of One Thousand Nine Hundred and Twenty-two Dollars ($1,922) from VACORP Risk Management for Repairs to a County Vehicle BACKGROUND: The County has received $1,922 in insurance proceeds for Sheriff’s Office vehicle repairs. The insurance proceeds need to be accepted and appropriated to the Risk Management Fund Budget for FY 2015-16. BUDGETARY IMPACT: Acceptance of said funds to perform vehicle repairs will increase the revenues and expenditures of the FY 2015-16 Risk Management Fund Budget. The impacted department’s budget will be increased by the amount of the insurance proceeds in order to accomplish the repairs. RECOMMENDATION: Adopt the resolution to accept and appropriate insurance proceeds from VACORP Risk Management for repairs to a County vehicle. ATTACHMENTS: Resolution B & F/ Insurance Proceeds/ MWT 2.1.16 RESOLUTION TO ACCEPT AND APPROPRIATE FUNDING FROM VACORP RISK MANAGEMENT FOR REPAIRS TO A COUNTY VEHICLE WHEREAS, the County of Isle of Wight, Virginia has received insurance proceeds from VACORP Risk Management in the amount of one thousand nine hundred twenty-two dollars ($1,922) for County vehicle repairs; and, WHEREAS, insurance proceeds need to be accepted and appropriated to the Risk Management Fund Budget for FY2015-16; and, WHEREAS, insurance proceeds need to be budgeted to the appropriate department’s line item for vehicle repairs for FY2015-16. NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the Board of Supervisors of the County of Isle of Wight, Virginia that one thousand nine hundred twenty-two dollars ($1,922) is hereby accepted and appropriated to the FY2015-16 Risk Management Fund Budget. BE IT FURTHER RESOLVED that the appropriate department’s budget line item be increased by the amount of the insurance proceeds for vehicle repairs. BE IT FURTHER RESOLVED that the Interim County Administrator of the County of Isle of Wight, Virginia is authorized to make the appropriate accounting adjustments in the budget for this reimbursement and to do all things necessary to give this resolution effect. Adopted this 17th day of March, 2016. _____________________________ Rex W. Alphin, Chairman ______________________________ Carey Mills Storm, Clerk Approved as to form: Mark C. Popovich, County Attorney 1 REGULAR MEETING OF THE ISLE OF WIGHT COUNTY BOARD OF SUPERVISORS HELD IN THE ROBERT C. CLAUD, SR. BOARD ROOM OF THE ISLE OF WIGHT COUNTY COURTHOUSE ON THURSDAY, JANUARY TWENTY FIRST IN THE YEAR TWO THOUSAND AND SIXTEEN AT 5:00 P.M. PRESENT: Rex W. Alphin, Chairman Rudolph Jefferson, Vice-Chairman Joel C. Acree Richard L. Grice William M. McCarty Also Attending: Mark C. Popovich, County Attorney Donald T. Robertson, Acting County Administrator Carey Mills Storm, Clerk CALL TO ORDER/CLOSED MEETING Chairman Alphin called the meeting to order at 5:00 p.m. County Attorney Popovich requested a closed meeting pursuant to Section 2.2-311(A)(1) of the Code of Virginia concerning a discussion concerning the appointment of a specific public appointees to County boards/committees or authorities; pursuant to Section 2.2-3711(A)(5) concerning a discussion regarding a prospective business or industry where no previous announcement has been made of the business’ interest in locating its facilities in the community; pursuant to Section 2.2-3711(A)(7) concerning consultation with legal counsel requiring the provision of legal advice regarding actual litigation where such consultation is open session would adversely affect the negotiating position of the public body with respect to a lawsuit filed by International Paper; and, pursuant to Section 2.2-3711(A)(7) concerning consultation with legal counsel employed by the public body regarding a probable litigation where such consultation in open session would adversely affect the negotiating position of the public body regarding a retaliation claim. 2 Supervisor McCarty moved that the Board enter the closed meeting for the reasons discussed by County Attorney Popovich. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. Supervisor Acree moved that the Board return to open session. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. Supervisor Jefferson moved that the Board adopt the following Resolution: CERTIFICATION OF CLOSED MEETING WHEREAS, the Board of Supervisors has convened a closed meeting on this date pursuant to an affirmative recorded vote and in accordance with the provisions of the Virginia Freedom of Information Act; and, WHEREAS, Section 2.2-3712(D) of the Code of Virginia requires a certification by this Board of Supervisors that such closed meeting was conducted in conformity with Virginia law; NOW, THEREFORE, BE IT RESOLVED that the Board of Supervisors hereby certifies that, to the best of each member's knowledge, (i) only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the closed meeting to which this certification resolution applies, and (ii) only such public business matters as were identified in the motion convening the closed meeting were heard, discussed or considered by the Board of Supervisors. VOTE AYES: Alphin, Darden, Jefferson, Casteen and Bailey NAYS: 0 3 ABSENT DURING VOTE: 0 ABSENT DURING MEETING: 0 INVOCATION/PLEDGE OF ALLEGIANCE At 6:00 p.m., the invocation was delivered by Supervisor Jefferson followed by the Pledge of Allegiance to the Flag. APPROVAL OF AGENDA Supervisor Jefferson moved that the agenda be adopted as amended moving Citizens Comments prior to the Consent Agenda and Andrew Gregory’s presentation before Carter Williams’ presentation under Special Presentations. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. CITIZENS’ COMMENTS Sandra Hess of Carrollton requested the requirements associated with a Conditional Use Permit variance for bed and breakfast establishments be reviewed. Supervisor McCarty requested that staff look into Ms. Hess’ stated concern. Barry Butler, Government Relations Specialist, provided the mission statement of the Peninsula Housing & Building Association and thanked the Board for its service to the citizens. Michael Uzzle of the Hardy District welcomed the new Board members and asked them to keep in mind their campaign pledge as they carry out the business of the County. Sam Cratch of the Windsor District welcomed the new Board members. 4 Jose Hernandez of Carrollton advised the Board on events leading up to and associated with the recent installation of a new water meter; the sanitation practices used by the County to ensure the sanitary delivery of water; and his receipt of a delinquent tax notice from the County dated November 7, 2015, Chairman Alphin requested Mr. Robertson to investigate Mr. Hernandez’s concern and provide a report regarding same back to the Board. Vicky Hulick of the Newport district, newly elected School Board member, welcomed the new Board members and expressed her desire for a good working relationship between the School Board and Board of Supervisors in the future. Judson West, Deputy Chief, Carrsville Volunteer Fire Department and Chairman of the County’s Fire & Rescue Association, addressed the Board regarding the importance of funding for apparatus and equipment in the FY2016 CIP and 460 project Shelley Perry commented on the need for alternatives to deal with traffic congestion and construction in the County. Herb DeGroft voiced approval of the County’s recent hire of Sanford Wanner as Interim County Administrator; commented on the need for a less onerous water payment on the front end for the County to the Western Tidewater Water Authority and recommended that the bike/walk path from Cypress Creek to Nike Park be deferred. Maggie Richards, Hardy District, noted her approval of the Citizens Comments period being moved to the beginning of Board meetings and the changes to the Board’s By-Laws and Rules of Procedure. CONSENT AGENDA A. Resolution to Recognize the Contributions of a County Fair Committee Member 5 B. STOP Organization Certificate of Recognition C. Resolution to Accept and Appropriate Funding from VACoRP Risk Management for Repairs to a Sheriff’s Office Vehicle D. December 17, 2015 Regular Meeting Minutes Supervisor Jefferson moved that the Consent Agenda be adopted as presented. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. REGIONAL REPORTS A report was offered by Supervisor Jefferson on issues related to the Western Tidewater Jail Authority followed by a briefing by Chairman Alphin on items discussed at the most recent meeting of the Hampton Roads Transportation Commission. APPOINTMENTS Supervisor McCarty moved that Brenda Reynolds be appointed to replace Pat Clark representing the Newport District on the Commission on Aging. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. Supervisor McCarty moved that Thomas Finderson be appointed to replace Mary Jane Richter representing the Newport District on the Commission on Aging. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. Supervisor Grice moved that Denise Tynes be appointed to replace Debra Frank representing the Smithfield District on the Commission on Aging. The 6 motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. Supervisor McCarty moved that the following Board members be appointed to serve on the following Board Committees for 2016: Public Works (Trash, Bldg., Refuse, Fleet) Acree McCarty Community Development (E.D., Planning, Grice Inspections, Utilities) Alphin Joint Tourism Grice McCarty Parks, Recreation & Cultural Jefferson Alphin Personnel Jefferson McCarty Public Safety Jefferson (Fire, EM, 911, Sheriff) Acree Franklin Intergovernmental Relations Acree Alphin Smithfield Intergovernmental Relations Jefferson Grice Windsor Intergovernmental Relations Acree Alphin 7 The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. Chairman Alphin moved that the following Board members be appointed TO the following regional organizations: H.R. Economic Development Alliance Grice H.R. Military Federal Facilities Alliance McCarty H.R. Planning District Commission Alphin Wanner H.R. Trans. Accountability Comm. Chair H.R. Transportation Planning Org. Alphin Jefferson/Alt. Southeastern Public Service Authority Popovich Tony Wilson/Alt. Western Tidewater Regional Jail Alphin Jefferson Western Tidewater Water Authority Grice Acree Popovich/Alt. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. Supervisor Acree moved that Sanford Wanner, the County’s incoming Interim County Administrator, be appointed to the Hampton Roads Planning District Commission. The motion was adopted by a vote of (5-0) with 8 Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. SPECIAL PRESENTATIONS/APPEARANCE A. Town of Smithfield/Water Agreement Discussion Andrew C. Gregory, Vice-Mayor, Town of Smithfield, addressed the Board regarding the need for discussions between the County and the Town of Smithfield on a proposed water and sewer agreement. The consensus of the Board was that the matter be tabled for staff’s review and recommendation back to the Board of the documents submitted by Mr. Gregory. B. Town of Smithfield - Sports Complex A request was presented by T. Carter Williams, Mayor, Town of Smithfield, for funding from the County in the amount of $250,000 for a sports complex to be built on Town of Smithfield property. Supervisor Acree moved that the Town of Smithfield’s funding request be tabled to allow for citizen feedback. The motion was adopted by a vote of (5- 0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. C. 2015 Isle of Wight County Fair Awards Danny Byrum, Isle of Wight County Fair Committee Chairman, addressed the Board regarding the awards received by the County in association with the 2015 Isle of Wight County Fair. D. Recognition of Carrsville Elementary School as a Distinguished Title I School Chairman Alphin moved that the following Resolution be adopted: 9 RESOLUTION TO RECOGNIZE CARRSVILLE ELEMENTARY SCHOOL’S DESIGNATION AS A DISTINGUISHED TITLE I SCHOOL WHEREAS, Title I of the Elementary and Secondary Education Act – which Congress reauthorized through passage of the Every Student Succeeds Act of 2015 – authorizes federal funding for programs to raise the achievement of students identified as being at risk of academic failure; and, WHEREAS, Title I Distinguished schools are recognized for meeting all state and federal accountability requirements for two consecutive years and achieving reading and mathematics SOL pass rates at 60th percentile or higher; and, WHEREAS, Carrsville Elementary School is among 55 schools being honored by the Virginia Board of Education for raising the academic achievement of economically disadvantaged students; and, WHEREAS, Carrsville Elementary has been recognized as a Distinguished Title I School seven times in the last eight years, and in 2013 they were honored as a National Blue Ribbon School; and, NOW, THEREFORE, BE IT RESOLVED that the Isle of Wight County Board of Supervisors does hereby recognize the designation of Carrsville Elementary School as a Distinguished Title I School. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. PUBLIC HEARING Resolution to Adopt the FY2017-2026 Capital Improvements Plan Mr. Robertson advised that a brief description of each project is contained in the Board’s agenda. 10 Chairman Alphin opened the public hearing and called for persons to speak in favor of or in opposition to the proposed Plan. Shelley Perry of 13458 Melissa Drive asked the Board to keep in mind needs versus wants. Rosa Turner of 4820 Old Stage Highway encouraged the Board to allocate funds for projects within the Hardy District. Herb DeGroft of 15411 Mill Swamp Road recommended that a study be conducted prior to any new school being built. The public hearing was closed by Chairman Alphin who then called for comments from the Board. By motion of Supervisor Grice, which was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion, action on the CIP was tabled until questions regarding certain projects and the method utilized for prioritization of projects in the Plan are addressed and returned to the Board at a later date. COUNTY ATTORNEY’S REPORT Claim for Reimbursement – Windsor and Carrollton Volunteer Fire Departments Following a PowerPoint presentation by County Attorney Popovich which outlined the history associated with the request by representatives of the Carrollton & Windsor Volunteer Fire Departments for reimbursement of legal fees associated with those Department’s Facility Use Agreements, he recommended that the Board defer action of this matter until the Board’s February 18, 2016 meeting to allow him to analyze materials already submitted from those Departments and to request additional information for audit purposes. 11 Written Conflict of Interest Act disclosures were provided to the Clerk by Supervisor Acree, as Chief of the Carrollton Volunteer Fire Department and Supervisor Jefferson with regard to the Rushmere Volunteer Fire Department. Supervisor McCarty moved that the Carrollton and Windsor Volunteer Fire Departments be reimbursement for all legal fees with the caveat that they present necessary documents and that staff be directed to prepare a resolution appropriating $29,868.64 from the County’s Unassigned Fund Balance. The motion was adopted by a vote of (3-2) with Supervisors Acree, Grice and McCarty voting in favor of the motion and Supervisors Alphin and Jefferson voting against the motion. COUNTY ADMINISTRATOR’S REPORT A. Staff Report – Transportation Jamie Oliver, Transportation Coordinator, provided a briefing relative to operations and administration of the Locally Administer Project (LAP) Program and associated funding sources. B. Resolution – Opposition to the Recommended Preferred Alternative to U. S. 460 Supervisor Acree moved that the following Resolution be adopted: RESOLUTION TO OPPOSE THE RECOMMENDED PREFERRED ALTERNATIVE TO U.S. 460 WHEREAS, Isle of Wight County recognizes that the U.S. 460 Corridor Improvement Project is intended to benefit the long term interests of the Commonwealth; and, 12 WHEREAS, Isle of Wight County acknowledges that specific constraints, including environmental issues, limit the location of the proposed corridor improvements in Isle of Wight County; and, WHEREAS, Isle of Wight County is a constructive partner regarding U.S. 460 corridor improvements that seek to benefit the welfare of various local, regional and statewide interests and stakeholders, including the Port of Virginia; and, WHEREAS, several of the Port of Virginia’s largest customers are located in Isle of Wight County and have a demonstrated need to access the U.S. 460 Corridor Improvements in order to provide safe and efficient transport of their increasing freight traffic to and from the Port from the County’s Shirley T. Holland Intermodal Park; and, WHEREAS, the Shirley T. Holland Intermodal Park has 974 developable acres planned and zoned for future industrial development which will necessarily generate additional employee and freight traffic; and, WHEREAS, the future expansion of the Shirley T. Holland Intermodal Park is a vital component of Isle of Wight County’s sustained economic viability; and, WHEREAS, at its special meeting on February 11, 2015, the Board of Supervisors of Isle of Wight County adopted a resolution to support approval of the proposed location of the seventeen (17) mile recommended Preferred Alternative to U.S. 460 dated January 13, 2015, subject to five (5) specific conditions critical to the long-term interests of our community; and WHEREAS, VDOT submitted a Joint Permit Application to the U.S. Army Corps of Engineers on November 30, 2015 containing a refined corridor description which had not been previously submitted to, reviewed by, or otherwise shared with Isle of Wight for comment; and 13 WHEREAS, upon review such refinement specifically excludes reasonable access at Isle of Wight’s previously identified critical points, which were a crucial condition of the County’s previous support; NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED that the Board of Supervisors of the County of Isle of Wight, Virginia expresses its objection to the Joint Permit Application package submitted for public review on November 30, 2015 without County input on design changes. IT IS HEREBY FURTHER RESOLVED that the Board of Supervisors expresses its opposition to the Recommended Preferred Alternative to U.S. 460, as detailed in the recently release permit application package. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. C. Staff Report - Legislative Update Donald T. Robertson, Acting County Administrator, briefed the Board regarding bills Senator Lucas has agreed to patron in the 2016 session of the General Assembly, noting that similar bills would be carried in the House of Delegates by Delegate Tyler. D. Staff Report – Quarterly Financial Report for 2nd Quarter of FY2016 Michael W. Terry, Director of Budget and Finance, addressed the Board regarding information compiled relative to the County’s financial performance for the 2nd Quarter ended of FY2016. E. Motion to Set a Special Meeting Responsive to a request for a special meeting by Mr. Robertson for the purpose of training for the Board on the County’s budget process, Supervisor McCarty moved that the Board set a special meeting for the purpose of discussing the Southeastern Public Service Authority and to receive training 14 relative to the upcoming budget process on Thursday, February 4, 2016 at 10:00 a.m. and that staff be directed to invite representatives from Davenport & Company. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. F. Matters for the Board’s Information Acting County Administrator Robertson highlighted the following items included in the agenda for the Board’s information: 1.) Monthly Reports/Tax Levies & Collections as of December 2015/Cash Position and Statement of the Treasurer’s Accountability; 2.) Isle of Wight County Monthly Fire/EMS Call Summary and Other Statistics FY 2015/2016; 3.)Isle of Wight Website Statistics/December 2015; 4.) Solid Waste Division Litter Pickup; and, 5.) and Isle of Wight Extension Report/December 2015 UNFINISHED/OLD BUSINESS A. RFP/Gatling Pointe Waterline Following discussion by the Board regarding it not being the right time to move forward with this project; the length of time it would take for the County to recoup its investment; and, that this project should be considered as part of the Comprehensive Plan, the consensus of the Board was to not take action. B. Board of Supervisors’ By-Laws and Rules of Procedure Following a report from County Attorney Popovich on proposed changes recommended by the Board’s By-Laws and Rules of Procedure Committee and a recommendation from the Chairman regarding appointments to standing or ad-hoc committees, Supervisor McCarty moved that the By-Laws and Rules of Procedure be adopted as amended. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. 15 NEW BUSINESS A. Wooden Partition/Robert C. Claud, Sr. Board Room Supervisor Acree moved that the wooden partition be removed in the Board Room which separates the Board from the public it serves. The motion was adopted by a vote of (4-1) with Supervisors Acree, Alphin, Grice and McCarty voting in favor of the motion and Supervisor Jefferson voting against the motion. B. Audit of December 2015 Budget Projections In recognition of the Board’s decision tonight to conduct a special meeting on February 4, 2016 to discuss the upcoming budget process; to receive a presentation by Davenport & Company; and, due to the Director of Budget and Finance’s presentation earlier tonight, it was the consensus of the Board that it not take action on this matter. C. Convenience Center Schedule Chairman Alphin requested staff to return with recommendations for a revised schedule at the Board’s February 18, 2016 meeting. D. Hiring Freeze (County Managerial Positions) Supervisor Grice moved that the following positions be placed on hold until the arrival of the Interim County Administrator on February 1, 2016: Director of Parks & Recreation; Assistant to the County Administrator; Sanitation Supervisor; and, the Special Projects Manager. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. 16 ADJOURNMENT At 9:45 p.m., the meeting was declared adjourned by Chairman Alphin. __________________________ Rex W. Alphin, Chairman ___________________________ Carey Mills Storm, Clerk 1 SPECIAL MEETING OF THE ISLE OF WIGHT COUNTY BOARD OF SUPERVISORS HELD IN THE ROBERT C. CLAUD, SR. BOARD ROOM OF THE ISLE OF WIGHT COUNTY COURTHOUSE ON THURSDAY, FEBRUARY FOURTH IN THE YEAR TWO THOUSAND AND SIXTEEN AT 10:00 A.M. PRESENT: Rex W. Alphin, Chairman Rudolph Jefferson, Vice-Chairman Joel C. Acree Richard L. Grice William M. McCarty Also Attending: Mark C. Popovich, County Attorney Sanford B. Wanner, Interim County Administrator Donald T. Robertson, Director of Information Resources and Legislative Affairs Michael W. Terry, Director of Budget & Finance Carey Mills Storm, Clerk CALL TO ORDER Pursuant to action of the Board at its January 21, 2016 meeting to conduct a special meeting, Chairman Alphin called said meeting to order at 10:00 a.m. and recognized Sanford B. Wanner, the County’s new Interim County Administrator. APPROVAL OF AGENDA On motion of Supervisor McCarty, the agenda was approved as presented by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. 2 FY2016-17 BUDGET PROCESS The Board received a briefing from Donald T. Robertson, Director of Informational Resources and Legislative Affairs, relative to the FY2016-17 Budget process. The need for a work session with school representatives and for clarification on the Board’s role regarding funding for schools was voiced and Interim County Administrator Wanner offered to convey this message to the School Superintendent. Responses to questions posed by the Board at its January 21, 2016 meeting regarding the Capital Improvements Plan were distributed by Mr. Robertson. David Rose, Davenport & Company, briefed the Board on the role of a financial advisor and provided an overview of the County’s past credit ratings and debt profile. Jimmy Sanderson, Davenport & Company, briefed the Board on the importance of credit ratings and debt service levels and provided an overview of the County’s financial policies. SOUTHEASTERN PUBLIC SERVICE AUTHORITY A PowerPoint presentation illustrating the historical background of the Southeastern Public Service Authority was provided by County Attorney Popovich. County Attorney Popovich offered to provide a hard copy of his presentation to Supervisor Grice and have it posted on the County’s website. He additionally offered to research and provide the County’s current tonnage amount. 3 COUNTY’S PUBLIC SAFETY RADIO SYSTEM REPLACEMENT The Board received a briefing from Sheriff Mark Marshall regarding the County’s secured approval from the Federal Communications Commission (FCC) for licenses to upgrade the E-911 Emergency Communications System which has a deadline of spring of 2016. CLOSED MEETING County Attorney Popovich requested a closed meeting pursuant to Section 2.2-3711 (A)(29) of the Virginia Freedom of Information Act to discuss the award of a public contract involving the expenditure of public funds and for discussion of the terms and scope of such contract where discussion in open session would adversely affect the bargaining position or negotiating strategy of the public body and pursuant to Section 2.2-3711 (A)(7) regarding consultation with legal counsel employed and retained by the public body concerning specific legal matters requiring the provision of legal advice regarding the Southeastern Public Service Authority. Supervisor Acree moved that the Board enter the closed meeting for the reasons specified which was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. Supervisor Acree moved that the Board return to open session which was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. Supervisor McCarty moved that the following Resolution be adopted: CERTIFICATION OF CLOSED MEETING WHEREAS, the Board of Supervisors has convened a closed meeting on this date pursuant to an affirmative recorded vote and in accordance with the provisions of the Virginia Freedom of Information Act; and, 4 WHEREAS, Section 2.2-3712(D) of the Code of Virginia requires a certification by this Board of Supervisors that such closed meeting was conducted in conformity with Virginia law; NOW, THEREFORE, BE IT RESOLVED that the Board of Supervisors hereby certifies that, to the best of each member's knowledge, (i) only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the closed meeting to which this certification resolution applies, and (ii) only such public business matters as were identified in the motion convening the closed meeting were heard, discussed or considered by the Board of Supervisors. VOTE AYES: Acree, Alphin, Grice, Jefferson and McCarty NAYS: 0 ABSENT DURING VOTE: 0 ABSENT DURING MEETING: 0 ADJOURNMENT The special meeting was declared adjourned at 12:00 p.m. by Chairman Alphin. __________________________ Rex W. Alphin, Chairman ___________________________ Carey Mills Storm, Clerk 1 REGULAR SCHEDULED MEETING OF THE ISLE OF WIGHT COUNTY BOARD OF SUPERVISORS HELD IN THE ROBERT C. CLAUD, SR. BOARD ROOM OF THE ISLE OF WIGHT COUNTY COURTHOUSE ON THURSDAY, FEBRUARY EIGHTEENTH, IN THE YEAR TWO THOUSAND AND SIXTEEN AT 5:00 P.M. PRESENT: Rex W. Alphin, Chairman Rudolph Jefferson, Vice-Chairman Joel C. Acree Richard L. Grice William M. McCarty Also Attending: Mark C. Popovich, County Attorney Sanford B. Wanner, Interim County Administrator Donald T. Robertson, Director of Information Resources and Legislative Affairs Carey Mills Storm, Clerk CALL TO ORDER/CLOSED MEETING At 5:00 p.m., the meeting was called to order by Chairman Alphin who requested County Attorney Popovich to identify all matters for closed meeting discussion. The following items for closed meeting discussion were noted: Pursuant to Section 2.2-3711(A)(1) of the Code of Virginia regarding discussion of the appointment of specific appointees to County boards, committees or authorities; pursuant to Section 2.2-3711(A)(7) regarding consultation with legal counsel employed and retained by this public body related to a specific legal matter requiring the provision of legal advice by such counsel related to the Benns Church intersection project; pursuant to Section 2.2-3711(A)(7) regarding consultation with legal counsel employed and retained by this public body regarding specific legal matters requiring the provision of legal advice by such counsel related to economic development incentive grants; pursuant to Section 2.2-3711(A)(3) regarding the disposition of publicly held real property where discussion in open meeting would adversely affect the 2 bargaining position or negotiating strategy of the public body related to the Great Springs Road property; pursuant to Section 2.2-3711(A)(7) regarding consultation with legal counsel employed and retained by this public body regarding actual litigation requiring the provision of legal advice by such counsel related to the International Paper lawsuit. Supervisor McCarty moved that the Board enter the closed meeting for the reasons stated by County Attorney Popovich, which passed unanimously (5- 0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. Supervisor Jefferson moved that the Board return to open meeting, which passed unanimously (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. Supervisor McCarty moved that the following Resolution be adopted: CERTIFICATION OF CLOSED MEETING WHEREAS, the Board of Supervisors has convened a closed meeting on this date pursuant to an affirmative recorded vote and in accordance with the provisions of the Virginia Freedom of Information Act; and, WHEREAS, Section 2.2-3712(D) of the Code of Virginia requires a certification by this Board of Supervisors that such closed meeting was conducted in conformity with Virginia law; NOW, THEREFORE, BE IT RESOLVED that the Board of Supervisors hereby certifies that, to the best of each member's knowledge, (i) only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the closed meeting to which this certification resolution applies, and (ii) only such public business matters as were identified in the motion convening the closed meeting were heard, discussed or considered by the Board of Supervisors. 3 VOTE AYES: Acree, Alphin, Grice, Jefferson and McCarty NAYS: 0 ABSENT DURING VOTE: 0 ABSENT DURING MEETING: 0 INVOCATION/PLEDGE OF ALLEGIANCE At 6:00 p.m., the invocation was delivered by Supervisor McCarty and the Pledge of Allegiance to the Flag was conducted. APPROVAL OF AGENDA Supervisor Grice moved that the agenda be approved with the following amendments: Under Unfinished/Old Business, move the Sports Complex item to follow Citizens’ Comments; under New Business, move the Rite Aid waiver item to follow Citizens Comments and add an issue concerning monthly Board work sessions and a request for an RFP; and, under the County Attorney’s report, remove the Lawnes Pointe Subdivision water system item and add an item pertaining to the assignment of timber rights. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. CITIZENS’ COMMENTS The following citizens spoke in favor of the proposed sports complex: Michael Uzzle of the Hardy District; Rosa Turner, on behalf of the Rushmere Community Development Corporation; Dr. Milton Cook on behalf of Andrew Greggory, Vice-Chair, Smithfield Town Council; Herb DeGroft of 15491 Mill Swamp Road; Chris Kennedy, President, Smithfield Recreation; 4 James Holt, Windsor Athletic Association; and, Duke VanSelow of Smithfield. Albert Burckard, representing the Isle of Wight County Historical Society, distributed a book authored by Helen Haverty King entitled Historic Isle of Wight and requested the Board’s assistance in preserving the Jordan Wombwell house, a historic landmark in the County. Chairman Alphin formerly introduced Sanford B. Wanner, the County’s Interim County Administrator. SPORTS COMPLEX Responsive to a previous funding request by T. Carter Williams, Mayor, Town of Smithfield at the Board’s January 21, 2016 meeting and subsequent action of the Board to table the request to allow for citizen feedback, it was noted that 91% of 800 public surveys returned to the County had been in favor of the sports complex; that there is a need for a long-term plan and each district to be given equal attention; that the complex would be a selling point for economic growth; and, that the County should be doing its financial share as the facility will be used by the entire County. Supervisor McCarty moved that the Interim County Administrator be authorized to enter into negotiations with interested parties to develop an appropriate funding and operational agreement as a condition precedent of the County’s commitment of $250,000 towards the sports complex. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. RITE AID WAIVER Supervisor McCarty moved that the Rite Aid waiver be approved as presented. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. 5 CONSENT AGENDA A. Resolution - Accept and Appropriate Funding from VACoRP Risk Management for Repairs and Replacement of County Vehicles and Equipment B. Resolution - Accept and Appropriate Funds from the Virginia Department of Motor Vehicles Animal Friendly License Plate Program C. Resolution - Accept and Appropriate Funds Received from the Commonwealth of Virginia Department of Criminal Justice Services D. Resolution - Rescind Prior Isle of Wight County Board of Supervisors’ Motions to Provide Certain Economic Development Incentives which Have Not Been Reduced to Fully Executed Economic Development Incentive Grant Agreements E. Resolution - Designate March 14-18, 2016 as Agriculture Appreciation Week F. January 4, 2016 Organizational Meeting Minutes G. January 11, 2016 Called Special Meeting Minutes Supervisor Jefferson moved that the Consent Agenda be adopted as presented. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. REGIONAL REPORTS Interim County Administrator Wanner reported on matters discussed at the most recent meeting of the Hampton Roads Planning District Commission. 6 APPOINTMENTS Supervisor Jefferson moved that James Ford be reappointed to serve on the Planning Commission representing the Hardy District. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. Supervisor Jefferson moved that Herb DeGroft be appointed to serve on the Senior Services of Southeastern Virginia. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. Supervisor McCarty moved that Donald T. Robertson be appointed to serve as the ex-officio voting member on the Chamber of Commerce. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. Supervisor Acree moved that William G. Saunders, IV be reappointed to serve on the Planning Commission representing the Windsor District. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. Supervisor Grice moved that Thomas Duerig be appointed to serve on the Planning Commission representing the Smithfield District. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. SPECIAL PRESENTATION/APPEARANCE A. Special Presentation - Resolution of Appreciation to Mr. Robert P. Parsons upon the Occasion of His Retirement 7 Robert P. Parsons was publicly recognized and presented the following resolution which was adopted unanimously (5-0) by motion of Supervisor Acree with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion: RESOLUTION OF APPRECIATION TO ROBERT P. PARSONS UPON THE OCCASION OF HIS RETIREMENT WHEREAS, Robert P. Parsons has owned and operated Windsor Pharmacy, Inc. since October 1973 where he has faithfully served as Pharmacist. WHEREAS, Robert P. Parsons and family members have positively impacted the quality of life for those in the community and the Isle of Wight County Board of Supervisors wishes to recognize and commend Robert P. Parsons for his long-standing dedication and service; and, WHEREAS, Robert P. Parsons retired and subsequently sold Windsor Pharmacy, Inc. to CVS/Pharmacy on December 11, 2015. BE IT RESOLVED that the Isle of Wight County Board of Supervisors wishes to extend its best wishes to Robert P. Parsons upon his retirement and presents this Resolution as a token of its gratitude. BE IT FURTHER RESOLVED that the Isle of Wight County Board of Supervisors orders that a copy of this Resolution be spread upon the minutes of this Board this 18th day of February, 2016. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. B. Special Presentation – Western Tidewater Regional Jail William C. Smith, Superintendent of the Tidewater Regional Jail, provided a briefing on operations of the regional Jail. 8 C. Special Presentation – Transportation Update The Board received a briefing by Joe Lomax, VDOT Franklin Residency Administrator, on paving, mowing and ditch maintenance of County roadways and the following concerns were relayed by the Board: Broken pavement/Reynolds Drive near Doggett Lane (Supervisor Acree); replacement of road signs on Reynolds Drive and Smiths Neck Road (Supervisor McCarty); request for speed limit sign/Stephens Drive (Chairman Alphin); Joyner’s Bridge Road/collapse of pavement (Chairman Alphin). D. Special Presentation – Old Mill Intersection Signalization Update The Board received an update on the Old Mill intersection signalization project by Carroll Collins, P.E., Kimley-Horn Associates, which is at 90% design and will be forwarded to VDOT for review following this presentation. COUNTY ATTORNEY’S REPORT A. Request for Acknowledgement of Timber Rights County Attorney Popovich briefed the Board on the Timber Reservation provisions associated with land purchased by the County and part of the Deed of Bargain and Sale on property known as the Blackwater property. He recommended that the Board acknowledge Goodwood’s sale pursuant to the Timber Reservation to Timberland Investment Resources, LLC. In response to Supervisor Grice, County Attorney Popovich offered to research if the property is located within an agricultural forestal district and Supervisor Acree moved that the Interim County Administrator be authorized to execute the Acknowledgement of Assignment of Timber Rights. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. 9 B. Isle of Wight County Fair Committee By-Laws Revisions Responsive to a request by the Isle of Wight Fair Committee for revisions to their By-Laws involving the opening up of Executive Board membership to individuals who serve on the Committee and live outside the County and which clarifies those officers of the Committee which make up the Executive Board, Chairman Alphin moved that the proposed revisions to the Isle of Wight County Fair Committee By-Laws be approved and that the Chairman be authorized to execute same on behalf of the Board. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. COUNTY ADMINISTRATOR’S REPORT A. AirBnB: Responsive to the Board’s request to staff at its January 21, 2016 meeting for additional information on the issue of AirBnB, Richard Rudnicki, Assistant Director of Planning and Zoning, referred to the report contained in the agenda which outlines defined uses in the communities of Roanoke and Charlottesville. The Board was apprised that the citizen would qualify under the accessory residential use provisions already in place and would not require a Conditional Use Permit. B. Unpaved Roads Program Jamie Oliver, Transportation Planner, provided an overview of the County’s Unpaved Roads program and policies for the Board’s information. C. Legislative Update Donald T. Robertson, Director of Information Resources and Legislative Affairs, updated the Board on monitored legislation. 10 D. County’s Public Safety Radio System Replacement Following a presentation by Sheriff Mark Marshall on the need to replace the County’s public safety radio system, Supervisor McCarty moved to authorize the Interim County Administrator to enter into an agreement with Engineering Associates, LLC. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. E. Water Agreement/Town of Smithfield Responsive to direction to staff by the Board at its January 21, 2016 meeting for recommendations regarding the Town of Smithfield’s interest in the purchase of water, Supervisor Grice moved that the Interim County Administrator be directed to facilitate a meeting of the Smithfield Intergovernmental Relations Committee for discussion and negotiation on a water agreement with the Town of Smithfield. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. F. Convenience Center Schedule Mr. Robertson informed the Board that a meeting of the Public Works Committee is being rescheduled to discuss the issue of convenience center schedules and that the Board should anticipate a report forthcoming on the Committee’s recommendations at its March 17, 2016 meeting. G. County Administrator Search Process Interim County Administrator Wanner provided a copy of a proposal from an executive search firm for the Board’s information and consideration relative to the County’s search process for a permanent County Administrator and he was advised by Chairman Alphin that the matter will be addressed at the Board’s March 17, 2016 meeting. 11 H. Matters for the Board’s Information Mr. Wanner provided a highlight of the following matters for the Board’s information: Monthly Reports - Tax Levies & Collections as of December 2015/Cash Position/Statement of the Treasurer’s Accountability; Isle of Wight County Monthly Fire/EMS Report – Incidents by Zone; Isle of Wight County Sheriff’s Monthly Activity Report/January 2016; Isle of Wight Website Statistics/January 2016; Solid Waste Division Litter Pickup; Isle of Wight Extension Report/January 2016; Quarterly Financial Report - 2nd Quarter; Water Meter Replacement Notice; and, the Isle of Wight County Museum Report/January 2016. The Board was apprised that the County’s website is being updated to reflect improved terminology with respect to overpayment of taxes. OLD BUSINESS Mr. Robertson provided a summary of staff’s action to or status of an issue relayed to the Board at its January 21, 2016 meeting by Mr. Hernandez. NEW BUSINESS A. Request for Conveyance of Well Lot to United Methodist Church County Attorney Popovich presented a request from United Methodist Church for conveyance of a well lot, Supervisor McCarty moved that staff be authorized to advertise for public hearing the conveyance of the well lot to United Methodist Church as requested. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. B. Work Session/Board of Supervisors Following a recommendation by Supervisor Grice relative to the Board to conduct work sessions for the purpose of open dialogue with County Department Heads and the Board being brought up-to-date on functions 12 within the Offices of Budget & Finance; Safety & Emergency Services; Economic & Community Development; Utilities; Public Services; Inspections; Human Resources; Information Technology; Parks & Recreation; and, Tourism (with an invitation to the Commissioner of Revenue, Chairman of the Fire & Rescue Association and School Board, Sheriff and Treasurer), Supervisor McCarty moved that the Board set its first work session on March 7, 2016 at 1:00 p.m. in the Board Room. The motion was adopted by a vote of (5-0) with Supervisors Acree, Alphin, Grice, Jefferson and McCarty voting in favor of the motion and no Supervisors voting against the motion. C. RFP Request/Water Using Industries Responsive to Chairman Alphin’s request for additional information, Supervisor Grice directed staff to research and report back to the Board whether or not an RFP should be issued to solicit water-using industries for location in the Shirley T. Holland Industrial Park. ADJOURNMENT At 10:15 p.m., the Chairman declared the meeting adjourned. __________________________ Rex W. Alphin, Chairman ___________________________ Carey Mills Storm, Clerk ISSUE: Regional Reports BACKGROUND: The Board of Supervisors has previously directed that an opportunity be provided for monthly status briefings from Board members who serve as representatives to the various regional committees and authorities on behalf of the County. RECOMMENDATION: Receive an oral report. ATTACHMENT: Listing of regional committees/authorities and Board representation Organization Member Term Expires Hampton Roads Economic Development Alliance Grice January 2018 Hampton Roads Military Federal Facilities McCarty No Set Term Alliance Hampton Roads Planning District Commission Alphin No Set Term Sanford Wanner No Set Term Hampton Roads Transportation Accountability Chairman No Set Term Commission Hampton Roads Transportation Rex W. Alphin No Set Term Planning Organization Jefferson/Alternate No Set Term Southeastern Public Service Authority Popovich December 2017 Tony Wilson/Alternate December 2017 Western Tidewater Regional Jail Authority Alphin No Set Term Jefferson No Set Term Western Tidewater Water Authority Grice June 2018 Acree June 2018 Popovich/Alternate June 2018 Regional Reports - Page 2 (Appointed by Board Vote) 2016 BOARD MEMBER REGIONAL REPRESENTATIVE Boards/Commissions/Committees Name District Agricultural/Forestal District Advisory Council Replacement for Darden/Bd. Rep. Blackwater Regional Library Board Elizabeth Jones/RESIGNED Windsor June 2016 Board of Zoning Appeals Bobby Bowser Hardy May 2016 Comission on Aging/Board Representative Replacement for Bailey/Bd. Rep. Commission on Aging Carey Whitley/RESIGNED Smithfield October 2015 Commission on Aging Ruth Hartsfield Windsor April 2016 Economic Development Authority Len Alphin Windsor April 2016 Economic Development Authority Diana Beale Carrsville April 2016 Social Services Board/Liaison Replacement for Casteen/Bd. Rep. Southeastern Tidewater Opportunity Project Hazel Edwards March 2016 Wetlands Board Mark E. Brown Newport February 2016 Term Expires BOARDS/COMMISSIONS/COMMITTEES (Appointed by Board Vote) Those Boards/Commissions/Committees highlighted in yellow are most critical for appointment. ISSUE: Special Presentation – Historic Garden Week Tour BACKGROUND: The Franklin Garden Club has selected several homes in Isle of Wight County to show as part of its Historic Garden Week Tour in April. All of the selected homes in Isle of Wight County are over 200 years old and each home has ties to the Revolutionary War and/or the Civil War. Ms. Betsy Brantley, Chairman of the Tour, will give the Board a brief presentation on the Historic Garden Week Tour and the anticipated impact on tourism. RECOMMENDATION: For the Board’s information. ATTACHMENTS: None ISSUE: Special Presentation – Agricultural Update BACKGROUND: At its regular meeting on February 18, 2016, the Board adopted a resolution to designate March 14-18, 2016 as Agriculture Appreciation Week. In this regard, Janet Spencer, Extension Agent, will give the Board a brief presentation relative to agriculture in Isle of Wight County. RECOMMENDATION: For the Board’s information. ATTACHMENTS: None ISSUE: Special Presentation – Sustainable Water Recycling BACKGROUND: In response to several environmental issues that have presented themselves over time, such as declining aquifer levels and increased pollutant loadings in the Chesapeake Bay, Hampton Roads Sanitation District (HRSD) is proposing to provide additional/enhanced treatment to their current wastewater processes and re-inject the treated water, which would meet or exceed drinking water standards, back into the region’s aquifers. The proposed process would replenish a significant portion of the groundwater that is currently withdrawn for municipal water systems. Ted Henifin, General Manager, HRSD, will provide a brief presentation on sustainable water recycling efforts. RECOMMENDATION: For the Board’s information. ATTACHMENTS: None ISSUE: Public Hearing – Conveyance of Abandoned Well Lot to Benns United Methodist Church BACKGROUND: At its regular meeting on February 18, 2016, the Board received a formal request for consideration to convey the abandoned well lot, identified as Tax Map Parcel 32-01-098, to the Benns United Methodist Church. In order to properly convey public property, the Board directed staff to set this matter for public hearing in accordance with the provisions of Section 15.2-1800(B) of the Code of Virginia (1950, as amended). RECOMMENDATION: Following the public hearing, adopt a motion approving the conveyance of the well lot to the Benns United Methodist Church and authorize the Chairman to execute any and all documents necessary to effectuate the conveyance. ATTACHMENTS: - Official Land Record - Deed from Frank to Public Service Authority - Well Dedication - Deed from Public Service Authority to Board of Supervisors - Proposed Deed of Bargain and Sale ISSUE: Staff Report – Convenience Center Schedule BACKGROUND: The Board’s Public Works Committee met in February to review and discuss potential options relative to the County’s convenience center schedules. The Committee is still working with staff and reviewing information. An update will be provided at the Board’s regular meeting in April. RECOMMENDATION: For the Board’s information. ATTACHMENTS: None March 17, 2016/jtt ISSUE: Staff Report – 2015 Department of Emergency Services Annual Report BACKGROUND: The Department of Emergency Services will provide a brief report of its Annual Report for the Calendar Year Ending December 31, 2015. This represents the first Annual Report developed by the Department. BUDGETARY IMPACT: None RECOMMENDATION: For the Board’s information. ATTACHMENT: The Annual Report will be provided at the Board’s meeting. ISSUE: Staff Report – Legislative Update BACKGROUND: The 2016 Session of the General Assembly is scheduled to end on March 12, 2016. Staff will provide an update on significant legislative matters at the Board’s meeting on Thursday. RECOMMENDATION: For the Board’s information. ATTACHMENTS: None ISSUE: Matters for the Board’s Information BACKGROUND: The matters attached to this Board report are included as a means of providing information to the Board relative to matters of interest. These items do not require any action by the Board. RECOMMENDATION: For the Board’s information. ATTACHMENTS: 1. Monthly Reports: Tax Levies & Collections as of February 2016; Cash Position; and, Statement of the Treasurer’s Accountability 2. Isle of Wight County Monthly Fire/Emergency Medical Services (EMS) Report – Incidents by Zone 3. Isle of Wight Website Statistics/February 2016 4. Solid Waste Division Litter Pickup 5. Isle of Wight Extension Report/February 2016 6. Board of Zoning Appeals (BZA)/2015 Annual Report 7. Wetlands Board/2015 Annual Report 8. Stormwater Local Assistance Fund (SLAF) Grant MEMORANDUM TO: Tony Wilson, Director of Public Works FROM: Ralph Anderson, Solid Waste Division Manager SUBJECT: Solid Waste Division Litter Pickup DATE: March 08, 2016 Solid Waste Division, with the help of the Western Tidewater Regional Jail Workers, continues to make an effort to keep the County roadways clean. The following is a list of roads where litter was picked up during the month of February 2016: Nike Park Rd: Battery Park Rd to Smith`s Neck Rd. Bowling Green Rd: Bob White Rd to Turner Dr. Titus Creek: Nike Park to Smith`s Neck Rd. Reynold`s Dr: Brewers Neck Blvd to Smiths Neck Rd. Smith Neck Rd: Carrollton Blvd to Boundary Rd. Woodland Dr: Carroll Bridge Rd to Longview Dr. Poor House Rd: Courthouse Hwy to Bob White Rd. Central Hill Rd: Courthouse Hwy to Whispering Pines Tr. The following is a list where litter is scheduled to be picked up during the months of March thru June 2016: Holly Run Dr: Walters to Carrsville Hwy. Burdette Rd: Walter`s Hwy to Convenience Center Turner Dr: Benns Church Blvd to Scotts Factory Rd. Magnet Dr: Foursquare Rd to Comet Rd. White House Rd: Magnet Dr to Comet Rd. Carroll Bridge Rd: Scott`s Factory Rd to Woodland Dr. Scott`s Factory Rd: Courthouse Hwy to Tuner Dr. Muddy Cross Dr: Turner Dr to Benns Church Blvd. Tan Rd: Benn Church Blvd to Lankford Ln. Emmanuel Church Rd: Magnet Dr to Mill Swamp rd. VIRGINIA POLYTECHNIC INSTITUTE AND STATE UNIVERSITY Extension is a joint program of Virginia Tech, Virginia State University, the U.S. Department of Agriculture, and state and local governments. Virginia Cooperative Extension programs and employment are open to all, regardless of age, color, disability, gender, gender identity, gender expression, national origin, political affiliation, race, religion, sexual orientation, genetic information, veteran status, or any other basis protected by law. An equal opportunity/affirmative action employer. Invent the Future Virginia Cooperative Extension Isle of Wight County 17100 Monument Circle, Suite B Isle of Wight, VA 23397 757-365-6261 Fax: 757-357-9610 email: jaashle2@vt.edu www.vt.edu Isle of Wight Extension Report February 2016 Janet Spencer, Extension Agent, Agriculture & Natural Resources Valerie Nichols, Unit Administrative Assistant Agriculture  Continued to provide support and coordination for the Isle of Wight Master Gardeners (65 active members) and the Historic Southside Master Naturalist Chapter (50 active members).  Assisted Master Gardener and Master Naturalist volunteers with new trainee classes. This involved background screenings, material preparations, and trainee interviews.  Taught Entomology to the Chesapeake/Portsmouth Master Gardeners (35 attendees) and the Historic Southside Master Naturalists (20 attendees).  Taught a continuing education class on vegetable insect pests for the Suffolk Master Gardeners.  Master Naturalist volunteers continued planning for an IOW Courthouse Native Plant Garden. A design has been approved and work should begin soon.  Provided approximately 75 soil sample kits to local residents and industry personnel.  Provided information to 15 individuals concerning pesticide application requirements, land rent, soil fertility, crop budgets, vegetable production, and pollinator protection.  Attended the Pollinator Protection Plan Stakeholder Meeting coordinated by the Virginia Department of Agriculture and Consumer Services.  Implemented and attended the State Cotton Production Meeting and the State Peanut Production Meeting. Approximately 120 people attended the peanut meeting and about 150 attended the cotton meeting.  Implemented the SE Vegetable Production and Marketing meetings. Approximately 45 people were in attendance at both meetings.  Secured grower collaborators for the 2016 on-farm variety trials.  Attended a Cotton Marketing Training sponsored by the Virginia Department of Agriculture.  Served as a reviewer for a Virginia Cooperative Extension publication on herbicide injury to non-target crops.  Met with teachers at Georgie Tyler Middle School to discuss the potential of a school vegetable garden.  Assisted with coordinating a Grain Marketing In-Service for Extension Agents with crop responsibilities. VIRGINIA POLYTECHNIC INSTITUTE AND STATE UNIVERSITY An equal opportunity, affirmative action institution 4-H Youth Development  Interviewed approximately 35 Isle of Wight teens for CIT/Counselor positions for Junior 4-H Camp.  Selected and notified CIT’s/Counselors of their appointments for Junior 4-H Camp.  Begin scheduling and planning counselor trainings, which will begin in March and continue into June. Outreach and Administrative  Spencer attended the Virginia Cooperative Extension Professional Development Conference held in Blacksburg Feb. 2-4, 2016.  Spencer began preparations with Windsor Elementary School to read to 1st graders during National Ag Awareness Month (March). Face-to-face: 450 Calls: 115 Emails: 200 Social Media: 3 more “likes” for Agriculture and Natural Resources facebook page. ISSUE: Staff Report – Unpaved Roads Policy BACKGROUND: There are still a significant number of unpaved roads throughout the County. Staff has previously provided a presentation to the Board regarding the County’s current Pave-in-Place Program and recommended policy updates to prioritize County projects and funds. Staff is requesting the Board’s consideration of a recommended policy. RECOMMENDATION: Adopt an Unpaved Roads Policy. ATTACHMENTS: Unpaved Roads Policy Page 1 of 4 Article IV Unpaved Roads Program Section 4.0 Rural Rustic Roads 1. Program Eligibility The Rural Rustic Roads program is a pave-in-place program for existing public roadways. The program does not allow for any improvements outside of the existing right-of-way, or any site or drainage improvements beyond the front slope of the ditch—except for replacement of substandard driveway culverts within State-permitted driveways. The following minimum criteria must be met to apply for inclusion on the paving list: a. Must be an unpaved roadway already within the State Secondary System. b. Must carry no less than 50 VPD and no more than 1,500 VPD. c. Must have a minimum of 18 feet of travel width. d. Must have a minimum of 30 feet prescriptive right-of-way (50’ preferred). e. Must have a minimum of 3 occupied residential units accessing the roadway. f. Must be outside of the County’s DSDs, and have agricultural or low-density residential zoning. g. Must have a signed petition of support from all property owners accessing the roadway. 2. Application Process a. Applications and all requested supporting documentation are due by December 1st of the application year, to be evaluated and considered for the next SYIP. i. Applications are available on the County’s website, or from the Transportation Division. ii. Only a property owner(s) accessing their property from the roadway in question may apply for the program. b. Applications and supporting documentation shall be submitted to the Transportation Division for review and evaluation. 3. Evaluation Process a. The Transportation Division will verify all information in the application and supporting documentation is accurate and complete. b. Verified packages will be forwarded to VDOT for concurrence of eligibility. c. Applications determined eligible by the County and VDOT shall be evaluated by the County using the criteria and scoring tool published in the Rural Rustic Roads/ Rural Addition Assessment and Prioritization Project report, dated June 2015. d. Evaluations and scores shall be presented with a staff recommendation to the Board of Supervisors during the SYIP public review and public hearing process. Page 2 of 4 e. Projects shall move forward in general conformance with Section 4.2, as determined by the Board of Supervisors upon adoption of the SYIP. Section 4.1 Rural Addition Roads 1. Program Eligibility The Rural Additions program is a program to move eligible private, residential streets into the State’s public Secondary Road System. To be accepted into the Secondary Road System, the road must meet minimum requirements for the use of State maintenance funds. Sub-standard roadways can be considered for inclusion in the system if they meet minimum qualifications, a funding source for improvements is identified, and they are programmed for construction in the SYIP to be brought into conformance with current standards within 24 months. 2. Maintenance-Eligible Private Roads Roadways which already meet VDOT’s Secondary Street Acceptance Standards (SSAS) can apply directly to VDOT for acceptance into the Secondary Road system. 3. Sub-standard Private Roads Roadways which do not already meet VDOT’s SSAS can apply for inclusion in the County’s Unpaved Roads Program for funding of the improvements necessary to meet SSAS and apply for acceptance. The following minimum criteria must be met for sub-standard private roads to apply for inclusion on the paving list to fund improvements and acceptance: a. Must have been in public use for at least 20 years. b. Must be available for public use 24 hours a day. c. Must have a minimum 40 feet of right-of-way (50’ preferred) which is of platted or dedicated for the roadway and unencumbered by other utility easements. d. Must have a minimum of 3 occupied residential units accessing the roadway. e. Must be connected to other roads already maintained by VDOT. f. Must have a signed petition of support from all property owner accessing the roadway. g. In the case of dead-ends and cul-de-sacs, must provide adequate turn around area for maintenance vehicles within the platted right-of-way. h. Must not include any speculative interest, as defined by the Commonwealth Transportation Board. 4. Application Process a. Applications and all requested supporting documentation are due by December 1st of the application year, to be evaluated and considered for the next SYIP. Page 3 of 4 i. Applications are available on the County’s website, or from the Transportation Division. ii. Only a property owner(s) accessing their property from the roadway in question may apply for the program. b. Applications and supporting documentation shall be submitted to the Transportation Division for review and evaluation. 5. Evaluation Process a. The Transportation Division will verify all information in the application and supporting documentation is accurate and complete. b. Verified packages will be forwarded to VDOT for concurrence of eligibility. c. Applications determined eligible by the County and VDOT shall be evaluated by the County using the criteria and scoring tool published in the Rural Rustic Roads/ Rural Addition Assessment and Prioritization Project report, dated June 2015. d. Evaluations and scores shall be presented with a staff recommendation to the Board of Supervisors during the SYIP public review and public hearing process. e. Projects shall move forward in general conformance with Section 4.2, as determined by the Board of Supervisors upon adoption of the SYIP. Section 4.2 Funding Prioritization In recognition that both State and local funds are severely limited, the Board of Supervisors will consider the following hierarchy in applying public funds to road projects which have been adopted into the County’s prioritized SYIP list: 1. Private Funds On a case-by-case basis, and upon request and Board approval, the County Transportation Division will provide project administration of projects in which residents provide 100% of project funding. 2. Non-Match Funds State, federal, or private funds which do not include a match requirement, and which are specifically designated for the sole use of unpaved or sub-standard road improvements shall be applied as follows: a. Projects currently in the SYIP which lack funding for completion shall be completed first. b. Projects not currently in in the SYIP shall be completed in order of priority, as adopted in the most recent SYIP, with funds being accumulated on one project at a time until allocations reach the value of the most recent Engineer’s Estimate. c. The County will accept private contributions for roadways in order of priority, as adopted in the most recent SYIP, with funds being accumulated on one project at a time until allocations reach the value of the most recent Engineer’s Estimate. Page 4 of 4 3. Matching Funds In the case that residents are willing to provide project funding of 50% of the Engineer’s Estimate, The County Transportation Division will prepare a Revenue Sharing grant application for the project, and administer projects which receive requested grant funds necessary to fund 100% of the Engineer’s Estimate. ISSUE: Resolution – Authorize Execution of the Agreement for Use and Support of a Solid Waste Disposal System By and Between Isle of Wight County and the Southeastern Public Service Authority (SPSA) BACKGROUND: The Southeastern Public Service Authority (SPSA) is comprised of eight member jurisdictions consisting of the cities of Virginia Beach, Norfolk, Chesapeake, Portsmouth, Suffolk and Franklin and the counties of Isle of Wight and Southampton. In order to support and ensure the ongoing operations of SPSA, the member localities entered into certain Use and Support Agreements with SPSA that are set to expire on January 24, 2018. In order to address the continued needs of the member jurisdictions to dispose of municipal solid waste, the localities have been meeting over the past several years to develop a new, uniform Use and Support Agreement that will ensure the continued operation of SPSA post-January 2018. At a special meeting held on March 4, 2016, the SPSA Board of Directors formally approved as to form a proposed Use and Support Agreement that will form the basis of operational support between all member jurisdictions and SPSA. In addition, and as part of the process of ensuring the continued lifespan of the regional landfill, the SPSA Board of Directors issued a Notice of Intent to Award a Waste Supply Agreement (WSA) with RePower South which is in the process of obtaining all necessary permits and constructing a facility in the City of Chesapeake which will take municipal solid waste from the member localities and convert processible waste into fuel pellets for sale on the open market. The elimination of all outstanding SPSA debt by January 2018, along with entering into the WSA with RePower South, will result in a reduced tipping fee for all SPSA member jurisdictions. The SPSA Board of Directors has requested that each member jurisdiction review the proposed Use and Support Agreement and adopt a motion or resolution authorizing the execution of it as one of several steps necessary to finalize the WSA with RePower South. RECOMMENDATION: Adopt a resolution to authorize execution of the Agreement for Use and Support of a Solid Waste Disposal System By and Between Isle of Wight County and the Southeastern Public Service Authority (SPSA) ATTACHMENTS: - Resolution - Use and Support Agreement Between Isle of Wight County and the Southeastern Public Service Authority - Strategic Operating Plan RESOLUTION TO AUTHORIZE EXECUTION OF THE AGREEMENT FOR USE AND SUPPORT OF A SOLID WASTE DISPOSAL SYSTEM BY AND BETWEEN ISLE OF WIGHT COUNTY AND THE SOUTHEASTERN PUBLIC SERVICE AUTHORITY WHEREAS, Isle of Wight County (the “County”) is a member of the Southeastern Public Service Authority (“SPSA”) which was created by concurrent resolution of the Cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach and the Counties of Isle of Wight and Southampton (the “Localities”) in 1976; and WHEREAS, between 1983 and 1984, the County and the other Localities entered into individual Use and Support Agreements with SPSA, providing, among other things, that each member jurisdiction would deliver substantially all of the disposable solid waste generated or collected by or within or under the control of the Localities to SPSA; and WHEREAS, all of the Use and Support Agreements will expire on January 24, 2018; and WHEREAS, in anticipation of the expiration of the Use and Support Agreements, the Chief Administrative Officers of the member Localities of SPSA directed a technical committee to be established in order to review and address numerous policy and operational issues (the "Committee"). WHEREAS, the Committee has developed a proposed Use and Support Agreement which, among other things, ensures that all member localities are treated in a uniform manner; and WHEREAS, on March 4, 2016 the SPSA Board of Directors formally approved the form of the Use and Support Agreement that would be entered into by all member jurisdictions to support the ongoing operations of SPSA; and WHEREAS, the SPSA Board of Directors has also issued a Notice of Intent to Award a Waste Supply Agreement with RePower South which requires SPSA to deliver 350,000 tons of municipal solid waste to RePower’s facility which is to be constructed in the City of Chesapeake; and WHEREAS, as a condition precedent of SPSA and RePower entering into such an agreement, RePower has requested the SPSA member localities execute their respective Use and Support Agreements in order to ensure a “critical mass” of municipal solid waste will be available to support the commitment of SPSA to deliver that amount of solid waste as is required in the Waste Supply Agreement; and 2 WHEREAS, SPSA has shown its ability to become financially sound by eliminating all of its outstanding debts by January 2018 and its commitment to reducing the overall tipping fee costs of the member localities by negotiating a favorable agreement with RePower South, along with continuing to negotiate in good faith with the City of Suffolk on a Good Neighbor/Host Fee Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE ISLE OF WIGHT COUNTY BOARD OF SUPERVISORS hereby authorized the Chairman of the Board of Supervisors to execute the Agreement for Use and Support of a Solid Waste Disposal System by and between Isle of Wight County, Virginia and the Southeastern Public Service Authority. ADOPTED by the Isle of Wight County Board of Supervisors on this 17th day of March, 2016. Rex Alphin, Chairman Board of Supervisors Attest: Carey Mill-Storm, Clerk Approved as to Form: Mark C. Popovich, County Attorney I-1362127.6 AGREEMENT FOR USE AND SUPPORT OF A SOLID WASTE DISPOSAL SYSTEM This AGREEMENT FOR USE AND SUPPORT OF A SOLID WASTE DISPOSAL SYSTEM (“Agreement”), dated as of [_______________], is made by and between the SOUTHEASTERN PUBLIC SERVICE AUTHORITY OF VIRGINIA, hereinafter referred to as the “Authority”, and the COUNTY OF ISLE OF WIGHT, VIRGINIA, hereinafter referred to as the “Member Locality.” BACKGROUND: WHEREAS, the Authority was created in 1976 by concurrent resolution of the Cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach and the Counties of Isle of Wight and Southampton (the “SPSA Members”);* and WHEREAS, between 1983 and 1984, the SPSA Members entered into individual Use and Support Agreements with the Authority (such agreements, as originally entered into and subsequently amended, are the “Legacy Use & Support Agreements”) which provided, among other things, that each SPSA Member would deliver to the Authority substantially all of the disposable solid waste generated or collected by or within or under the control of such member; and WHEREAS, all of the Legacy Use and Support Agreements will expire on January 24, 2018; and * NOTE: Definition of “SPSA Members” will need to be modified in final Use & Support Agreements if any current Members elect NOT to continue with SPSA in the “Post-2018” period. 2 I-1362127.6 WHEREAS, in advance of the expiration of the Legacy Use and Support Agreements, a series of comprehensive studies were performed and discussions conducted in order to assess regional solid waste management planning and related issues; and WHEREAS, based on such studies, discussions and other factors, the SPSA Members have determined that a cooperative approach to the continuation of a regional system of municipal solid waste management, effected through the Authority, is in the best interests of the SPSA Members individually and the region in general; and WHEREAS, accordingly, the SPSA Members have each agreed to enter into identical new agreements with the Authority to replace their respective Legacy Use & Support Agreements (collectively, the “Post-2018 Use & Support Agreements”), with effect as of the Agreement Effective Date (defined below), to provide for the SPSA Members’ continuing delivery of municipal solid waste to the Authority and for the Authority’s continuing management and disposal of such waste. AGREEMENT: NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and other consideration herein contained, the Authority and the Member Locality agree that, effective as of (but not until) the Agreement Effective Date, the Legacy Use & Support Agreement between the parties originally dated January 5, 1984, as amended, shall be and hereby is terminated and superseded in its entirety by the following terms and conditions set forth in this Agreement: 3 I-1362127.6 ARTICLE I GENERAL INTENT AND PURPOSE 1. This Agreement is entered into between the Authority and the Member Locality in consideration of the “Background” factors stated above and pursuant to the authorization and mandate of the Virginia Water and Waste Authorities Act. 2. The Authority, in accordance with and subject to the terms, procedures, provisions and conditions hereinafter set out, desires to maintain and manage a safe, sanitary and environmentally sound solid waste disposal system and through such system accept, manage and dispose of the Member Locality’s solid waste. 3. The Member Locality, in accordance with and subject to the terms, procedures, provisions and conditions hereinafter set out, desires to use and support the Authority’s solid waste disposal system by providing for the disposal via such system of all municipal solid waste generated within, collected by or otherwise under the control of the Member Locality, and at rates set by the Board of Directors of the Authority from time to time in accordance with the Virginia Water and Waste Authorities Act. ARTICLE II DEFINITIONS 1. Agreement Effective Date – January 25, 2018. 2. Applicable Law – Collectively, the Virginia Water and Waste Authorities Act (as amended by Section 15.2-5102.1 of the Code of Virginia, sometimes referred to as the “Cosgrove Act”), the Virginia Waste Management Act, the Virginia Solid Waste Management Regulations (currently Chapter 81 of the Virginia Administrative Code), the Virginia Hazardous Waste 4 I-1362127.6 Management Regulations (currently Chapter 60 of the Virginia Administrative Code), the Resource Conservation and Recovery Act and any other federal, state or local law, rule, regulation, ordinance, permit, decree or other governmental requirement that applies to the services or obligations of either party under this Agreement, whether now or hereafter in effect, and each as may be amended from time to time. 3. Construction and Demolition Debris – Any Solid Waste that is produced or generated during or in connection with the construction, remodeling, repair and/or destruction or demolition of residential or commercial buildings, municipal buildings, roadways and other municipal structures, and other structures, including, but not limited to, lumber, wire, sheetrock, brick, shingles, glass, asphalt and concrete. 4. Delivery Point – Each facility and location owned or operated by the Authority, or by a third party that is subject to a contract with the Authority in respect of the Disposal System, that (a) possesses all permits required under Applicable Law to receive Solid Waste for disposal and (b) is designated by the Authority from time to time, in the Strategic Operating Plan, to accept Municipal Solid Waste from the Member Locality for further and final processing and disposal by or on behalf of the Authority (certain Delivery Points may sometimes be referred to as “transfer stations”). 5. Designated Disposal Mechanism – The method (or methods) utilized by the Authority for final disposal of Municipal Solid Waste during the Term of this Agreement, as designated by the Board of Directors of the Authority from time to time in accordance with the express terms of and set forth in the Strategic Operating Plan. The Designated Disposal Mechanism may include, among other methods, (a) disposal of Municipal Solid Waste in the Regional Landfill in accordance with Applicable Law, (b) disposal of Municipal Solid Waste 5 I-1362127.6 through one or more facilities owned and/or operated by the Authority in accordance with Applicable Law and/or (c) disposal of Municipal Solid Waste pursuant to agreements between the Authority and one or more third parties. 6. Disaster Waste – Any Solid Waste and debris that (a) is generated as a result of or in connection with any significant storm or other severe weather occurrence (such as, but not limited to, hurricanes and tornadoes), natural or man-made disaster, war, act of terrorism or other similar occurrence or event, together with Solid Waste and debris generated in connection with clean-up and/or reconstruction activities resulting from any such occurrences or events, and (b) is of a quantity or type materially different from the Solid Waste normally generated by or within the Member Locality. 7. Disposal System – All facilities and/or locations owned or leased by the Authority, or with respect to which the Authority otherwise maintains a contractual/commercial relationship, for the collection, management, processing and/or disposal of Solid Waste, including, but not necessarily limited to, the Regional Landfill, all Delivery Points and the Designated Disposal Mechanism(s), together with all equipment and vehicles owned or leased by the Authority and used in connection with the collection, management, processing and/or disposal of Solid Waste. 8. Disposal System Fees – Rates, fees and other charges imposed by the Authority for the collection, management, processing and/or disposal of Solid Waste within the Disposal System, as determined by the Board of Directors of the Authority from time to time in accordance with the Virginia Water and Waste Authorities Act (certain Disposal System Fees may sometimes be referred to as “tipping fees”). 9. Hazardous Waste – Any waste or other material that because of its quantity, concentration or physical, chemical or infectious characteristics may (a) cause or significantly 6 I-1362127.6 contribute to an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness; or (b) pose a substantial present or potential hazard to human health, the Disposal System or the environment when treated, stored, transported, disposed of or otherwise managed. Hazardous Waste specifically includes, but is not necessarily limited to, any waste classified as “hazardous” under the Resource Conservation and Recovery Act, the Virginia Hazardous Waste Management Regulations or any other Applicable Law. 10. Household Hazardous Waste – Surplus or excess household products that contain corrosive, toxic, ignitable or reactive ingredients, including, but not necessarily limited to, cleaning products, old paints and paint-related products, pesticides, pool chemicals, drain cleaners and degreasers and other car-care products. 11. Municipal Solid Waste – All Solid Waste the collection of which is controlled by the Member Locality, including (a) Solid Waste that is generated anywhere within the SPSA Service Area and collected by the Member Locality, and (b) residential Solid Waste that is generated anywhere within the SPSA Service Area and collected by a third party for the benefit of (and under the direction and control of) the Member Locality. Municipal Solid Waste expressly excludes the following (collectively referred to herein as “Excluded Waste”): (i) Hazardous Waste and Household Hazardous Waste, (ii) Recyclable Waste, (iii) Yard Waste, (iv) Construction and Demolition Debris, (v) Disaster Waste, (vi) Solid Waste delivered by citizens of the Member Locality to publicly-accessible landfills or other facilities and disposed of at such facilities, (vii) any Solid Waste generated by school boards, authorities or other political entities of the Member Locality (except to the extent (but only to the extent) that any such Solid Waste is actually collected by the Member Locality itself), and (viii) Out-of-Area Waste. 7 I-1362127.6 12. Out-of-Area Waste – Any Solid Waste that is created or generated outside of, or originates outside of, the SPSA Service Area. 13. Recyclable Waste – Any Solid Waste that, pursuant to Virginia’s Solid Waste Management Regulations (or other relevant Applicable Law) in effect from time to time, or pursuant to prevailing commercial practices in the waste management industry at the applicable time, (a) can be used or reused, modified for use or reuse, or prepared for beneficial use or reuse as an ingredient in an industrial process to make a product or as an effective substitute for a commercial product or (b) is otherwise processible (or reprocessible) to recover a usable product or is regenerable to another usable form, in each case, however, expressly excluding “residual” Solid Waste generated in connection with any such modification, preparation and/or processing for use, reuse, recovery and/or regeneration of other Solid Waste to the extent that such “residuals” cannot be categorized as “Recyclable Waste” in accordance with the foregoing. 14. Regional Landfill – The landfill located in the City of Suffolk, Virginia, developed, owned and operated by the Authority for the disposal of Solid Waste, or any additional or successor landfill developed, owned and operated by the Authority. 15. Solid Waste – Any garbage, refuse, sludge, debris and other discarded material, including solid, liquid, semisolid or contained gaseous material, resulting from industrial, commercial, mining and agricultural operations, or residential/community activities, excluding (a) solid or dissolved material in domestic sewage, (b) solid or dissolved material in irrigation return flows or in industrial discharges that are sources subject to a permit from the State Water Control Board and (c) source, special nuclear, or by-product material as defined by the Federal Atomic Energy Act of 1954, as amended; provided, the waste that constitutes Solid Waste hereunder (and/or is excluded from the definition of Solid Waste hereunder) shall be subject to change from 8 I-1362127.6 time to time during the Term of this Agreement to the extent necessary or appropriate under the Virginia Waste Management Act or other Applicable Law. 16. Special Termination Provision – The terms, conditions, requirements and procedures, collectively, pursuant to which the Member Locality may terminate this Agreement prior to the expiration of the Term (including, without limitation, payment by the Member Locality of the Early Termination Payment as calculated thereunder), in connection with its withdrawal from the Authority, as currently set forth in Schedule II attached hereto and as the same may hereafter be amended by the Board of Directors of the Authority in accordance with the express terms of Article VI.8 below, including, but not necessarily limited to, when and to the extent required to comply with Applicable Law. 17. “SPSA Service Area” – The geographic area covered by the political subdivision boundaries of the cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach, Virginia and the counties of Isle of Wight and Southampton, Virginia. 18. Strategic Operating Plan – That certain plan adopted by the Board of Directors of the Authority and attached hereto as Schedule I, which sets forth certain operational, maintenance, administrative and other responsibilities of the Authority with respect to the Disposal System and the performance of related services by the Authority, as the same may from time to time be amended, supplemented or modified by approval of at least seventy-five percent (75%) of the Board of Directors of the Authority. 19. Term – The duration of this Agreement, as set forth in Article III hereof. 20. Yard Waste – Any Solid Waste defined as “yard waste” under the Virginia Waste Management Act (or other relevant Applicable Law) in effect from time to time, currently 9 I-1362127.6 consisting of decomposable waste materials generated by yard and lawn care and including leaves, grass trimmings, brush, wood chips and shrub and tree trimmings, excluding roots, limbs or stumps that exceed the limitation(s) in length and/or diameter specified by the Authority in writing from time to time. ARTICLE III TERM OF AGREEMENT; TERMINATION 1. Term. (a) This Agreement shall become effective as of the Agreement Effective Date and shall continue thereafter for an initial term ending at midnight on the later to occur of (x) June 30, 2033 or (y) the last day of the initial term of any waste disposal agreement with a third-party vendor serving as the primary/principal Designated Disposal Mechanism for the Authority (the “Initial Term”), unless earlier terminated (i) by the Member Locality in accordance with the provisions of Section 2 below or (ii) in accordance with Section 3 below. (b) Following the Initial Term, subject to the Member Locality’s continuing termination rights under Section 2 below and to the termination provisions of Section 3 below, this Agreement shall automatically renew for successive additional terms of fifteen (15) years each (each, a “Renewal Term”), unless the Member Locality provides the Authority with written notice of its intent not to renew this Agreement at least eighteen (18) months prior to the expiration of the Initial Term or Renewal Term then in effect. For the avoidance of doubt, the Authority acknowledges and agrees that if the Member Locality provides timely notice of its intent not to renew this Agreement in accordance with this Section 1(b), then (i) this Agreement shall terminate effective as of the last day of the Initial Term or Renewal Term then in effect and (ii) such termination shall not be subject to the Special Termination Provision or require payment by the 10 I-1362127.6 Member Locality of any Early Termination Payment (or any other resulting penalty, obligation or liability); rather, the Early Termination Payment shall be payable in accordance with the Special Termination Provision only in the event that the Member Locality terminates this Agreement prior to the expiration of the Term, as further described in Section 2 below and Schedule II attached hereto. (c) The Initial Term and any/all Renewal Terms are referred to herein collectively as the “Term” of this Agreement. (d) To avoid any doubt, the parties acknowledge and agree that (i) this Agreement, and the parties’ respective rights, obligations and responsibilities hereunder, shall commence and otherwise become effective only as of (and not until) the Agreement Effective Date, and (ii) until the Agreement Effective Date, the parties’ existing Legacy Use & Support Agreement shall remain in effect and govern the parties’ respective rights, responsibilities and obligations thereunder. 2. Early Termination. The Member Locality may terminate this Agreement prior to the expiration of the Term only in accordance with the Special Termination Provision, the current version of which is attached hereto as Schedule II. 3. Termination on Dissolution. This Agreement shall terminate contemporaneously with the dissolution of the Authority in accordance with the provisions of the Water and Waste Authorities Act (or other relevant Applicable Law). 4. Notification. The Authority shall notify the Member Locality (and all other SPSA Members) immediately following receipt by the Authority of (a) written notice by any SPSA Member of its election not to renew this Agreement under Section 1(b) above and/or (b) any 11 I-1362127.6 Termination Notice delivered by any SPSA Member under and in accordance with the Special Termination Provision. ARTICLE IV AUTHORITY OBLIGATIONS 1. Strategic Operating Plan. The Authority shall manage, operate and maintain the Disposal System in accordance with the Strategic Operating Plan in effect from time to time. As described therein, the Strategic Operating Plan shall be reviewed by the Board of Directors of the Authority on at least an annual basis in connection with the Board’s review and consideration of the annual operating budget of the Authority, and at such other times as the Board may deem necessary or appropriate. If deemed necessary or appropriate after any such review, the Strategic Operating Plan may be updated or otherwise modified by a resolution approved by at least seventy- five percent (75%) of the Board of Directors of the Authority, and any such updated/modified Strategic Operating Plan shall be appended to this Agreement as new Schedule I hereto in complete replacement of any and all prior Strategic Operating Plans. Notwithstanding the foregoing or anything to the contrary herein, in the event of a conflict between the terms and conditions of this Agreement and the terms and conditions of the Strategic Operating Plan, the terms and conditions of this Agreement (considered without reference to the Strategic Operating Plan) shall control with respect to the subject matter hereof. 2. Management, Operation and Maintenance. Subject to any additional, more specific, requirements, exceptions and limitations set forth in this Agreement (including but not limited to any such requirements, exceptions and limitations set forth in the Strategic Operating Plan), the Authority shall: 12 I-1362127.6 (a) Continually manage, operate and maintain the Disposal System in accordance with the requirements of this Agreement, all Applicable Law and any other contracts or agreements to which the Authority is a party with respect to the Disposal System; (b) Receive and accept all Municipal Solid Waste at Delivery Points within the Disposal System; (c) Directly or indirectly provide for all transportation vehicles and equipment required to transport Municipal Solid Waste from each Delivery Point to the Designated Disposal Mechanism(s) then being utilized by the Authority; (d) Manage and otherwise effect the disposal of all Municipal Solid Waste via the Designated Disposal Mechanism(s) then being utilized by the Authority; (e) Perform all applicable corrective, preventive and routine maintenance to the Disposal System, including repairs and replacements, designed to maintain the Disposal System in accordance with customary standards then prevailing in the waste management industry, including by remediating all property damaged or otherwise adversely impacted as a result of the services provided by the Authority hereunder, such that the Disposal System is maintained in good physical and operating condition consistent with customary industry practices and Applicable Law; (f) Use all reasonable efforts to minimize service disruptions, Member Locality impacts and other inconveniences due to the availability of Delivery Points, the management, operation, maintenance, repair or replacement activities of the Authority with respect to the Disposal System, or any combination of such foregoing activities; (g) Use all reasonable efforts to enforce, in accordance with their respective terms, all contracts, agreements and other arrangements to which the Authority is a party in 13 I-1362127.6 connection with its management, operation and maintenance of the Disposal System, including but not limited to the Post-2018 Use & Support Agreements with the other SPSA Members and all contracts with respect to the Designated Disposal Mechanism(s) then utilized by the Authority; (h) Provide qualified management, supervision and personnel necessary to perform the Authority’s services hereunder; (i) Maintain a sufficient number of personnel on hand to properly operate the Delivery Points, Regional Landfill, transportation system, and Authority administration at a level appropriate for the Disposal System, as determined by the Executive Staff of the Authority in accordance with and otherwise consistent with the Authority’s annual budget approved by the Board of Directors each fiscal year; (j) Provide the Member Locality, by the end of February in each year during the Term, with a good faith written estimate/projection of all applicable Disposal System Fees for the Authority’s next fiscal year; (k) Develop, implement and maintain comprehensive policies and procedures regarding Hazardous Waste, including procedures designed to exclude Hazardous Waste from the Disposal System, in each case in accordance with all Applicable Law. Such policies and procedures may be set forth more particularly in the Strategic Operating Plan and/or in manuals or other documentation that the Authority is required to maintain in effect pursuant to the Strategic Operating Plan; (l) Not facilitate the importation of Out-of-Area Waste for (i) disposal in the Regional Landfill and/or (ii) handling/processing/disposal at or by any other Delivery Point included within the Disposal System; and 14 I-1362127.6 (m) Not accept (and shall not be required to accept) any Excluded Waste (including but not limited to Disaster Waste) anywhere within the Disposal System, in each case except (i) in accordance with policies and procedures set forth in the Strategic Operating Plan (for example, policies and procedures regarding the acceptance of Household Hazardous Waste) or (ii) as otherwise expressly authorized and approved by the Board of Directors of the Authority pursuant to an amendment to this Agreement duly adopted in accordance with the express terms of Article VI. 8 below. Unless otherwise specified in this Agreement, the Authority shall be solely responsible for all means, methods, techniques, procedures and safety programs or any combination of the foregoing in connection with the performance of the Authority’s services hereunder, including in the event any such services are subcontracted or otherwise delegated to one or more third parties. 3. Delivery Points. Without limiting the generality of the foregoing obligations of the Authority under Section 2 above, the Authority agrees that the Member Locality shall have the right to deliver or cause the delivery of its Municipal Solid Waste to any or all Delivery Points included within the Disposal System, subject at all times to (a) available capacity at any such Delivery Point designated by the Member Locality and (b) the right of the Authority to designate certain Delivery Points for special categories of Municipal Solid Waste; provided, notwithstanding anything in the foregoing or anywhere else in this Agreement to the contrary, the Authority shall at all times during the Term of this Agreement ensure that the Member Locality has access to at least one Delivery Point included within the Disposal System. 4. Compliance with Law. The Authority shall perform all services under this Agreement, including, without limitation, operation and maintenance of the Disposal System, in accordance with all Applicable Law. Furthermore, the Authority shall use best efforts to ensure 15 I-1362127.6 that all subcontractors performing services relative to the Disposal System comply with all Applicable Law in the performance of such services. 5. Permits and Insurance. The Authority shall, at its sole cost and expense, obtain and maintain in effect at all times during the Term: (i) all licenses, permits and insurance that are necessary or appropriate in connection with the services provided hereunder in accordance with Applicable Law and otherwise consistent with industry standards; and (ii) at a minimum, the following insurance coverage: (a) comprehensive general liability primary insurance having a minimum combined single limit of liability of one million dollars ($1,000,000) per occurrence; (b) comprehensive automobile liability primary insurance applicable to all owned, hired and non-owned vehicles having a minimum combined single limit of liability of one million dollars ($1,000,000) per occurrence; (c) environmental impact liability insurance of five million dollars ($5,000,000) per occurrence; and (d) excess liability insurance having a minimum limit of liability of ten million dollars ($10,000,000) per occurrence. The Authority shall, at least annually, review its existing licenses, permits and insurance and, as and when necessary, update and/or modify such licenses, permits and insurance to ensure that they are in compliance with all Applicable Law and otherwise consistent with reasonable industry standards. 6. Ancillary Waste Disposal Services. (a) In addition to the arrangement contemplated under this Agreement pursuant to which the Authority shall accept, manage and effect the ultimate disposal of all Municipal Solid 16 I-1362127.6 Waste of the Member Locality, the Authority may from time to time provide the Member Locality with additional/“ancillary” Solid Waste management and disposal services (collectively, “Ancillary Waste Disposal Services”), which may include (by way of example and not necessarily limitation) management and/or disposal of Household Hazardous Waste, vehicle tires (i.e., tire-shredding services), Yard Waste and/or sludge. (b) The Authority will provide Ancillary Waste Disposal Services, if at all, pursuant to a separate agreement with the Member Locality and/or pursuant to a “global” arrangement applicable to all SPSA Members and set forth in the Strategic Operating Plan; provided, however, that (i) all such Ancillary Waste Disposal Services and all applicable arrangement(s) with the Member Locality with respect to such Ancillary Waste Disposal Services shall be subject to prior approval of the Board of Directors of the Authority, and (ii) unless otherwise expressly authorized and approved by the Board of Directors of the Authority, (A) the fees charged by the Authority to the Member Locality for any such Ancillary Waste Disposal Services shall, at a minimum, be sufficient/adequate to cover the costs incurred by the Authority in providing such services and (B) all Ancillary Waste Disposal Services shall be available at identical fees to all SPSA Members that at such time are parties to a Post-2018 Use & Support Agreement. (c) Each year, in connection with its annual presentation to the Board of Directors of the Authority of its annual operating budget, the Authority shall prepare and provide a separate report that (i) specifically identifies all Ancillary Waste Disposal Services provided to each SPSA Member (including, if applicable, to the Member Locality) and (ii) includes appropriate/relevant financial data to demonstrate to the Board of Directors whether or not the fees 17 I-1362127.6 charged by the Authority for such Ancillary Waste Disposal Services actually covered the costs incurred by the Authority in providing such services to each applicable SPSA Member. (d) Notwithstanding anything herein to the contrary, and for the avoidance of doubt, the Authority acknowledges and agrees that its “core” obligation to accept, manage and dispose of the Municipal Solid Waste of the Member Locality (and all other SPSA Members) (i) does not and shall not constitute Ancillary Waste Disposal Services under this Section 6 and (ii) shall be performed by the Authority for the benefit of the Member Locality (and all other SPSA Members) only under and in accordance with their respective Post-2018 Use & Support Agreements and not pursuant to any other contract, agreement or arrangement. ARTICLE V MEMBER LOCALITY OBLIGATIONS 1. Delivery of Municipal Waste; Related Obligations. (a) The Member Locality shall be required to, and shall, deliver or cause to be delivered to the Authority one hundred percent (100%) of its Municipal Solid Waste. (b) In connection therewith, the Member Locality shall strictly comply with all rules or regulations of the Authority in effect from time to time during the Term of this Agreement, and all instructions and directions of the Authority’s agents and employees, in each case that are (i) required under Applicable Law, (ii) set forth in the Strategic Operating Plan and not otherwise inconsistent with the terms and conditions of this Agreement or (iii) are otherwise necessary for the lawful, safe and effective use and operation of the Disposal System and are communicated to the Member Locality in writing from time to time (including but not limited to all rules and regulations associated with the delivery of Municipal Solid Waste to applicable Delivery Points). 18 I-1362127.6 (c) On an annual basis, as promptly as practicable following receipt of any written request from the Authority (which the Authority shall endeavor to provide in advance of the Member Locality’s deliberations regarding its annual budget), the Member Locality shall provide the Authority with a good faith, written estimate of the aggregate tonnage of Municipal Solid Waste that the Member Locality expects to deliver or otherwise cause to be delivered to the Disposal System during the Member Locality’s next fiscal year. (The Authority understands that such estimates provided by the Member Locality cannot and do not constitute a guarantee, and that the actual amount of Municipal Solid Waste delivered by the Member Locality in a given year could vary materially from the corresponding good faith estimate thereof.) In addition, the Member Locality shall provide the Authority with as much prior notice as is reasonably practicable under the circumstances of any material changes (whether pending or possible) in the Municipal Solid Waste delivered (or caused to be delivered) by the Member Locality to the Authority hereunder, including, by way of example and not limitation, adoption of or changes in any recycling programs and/or changes in residential waste collection practices. 2. Payment of Disposal System Fees. (a) The Member Locality shall be required to, and shall, pay to the Authority the Disposal System Fees set forth in fee schedules adopted by the Authority from time to time, in accordance with the Virginia Water and Waste Authorities Act or other Applicable Law, in respect of all Solid Waste delivered to the Authority by the Member Locality and, where applicable, by individual residents of the Member Locality. The Authority may establish individual fee schedules for various types of users and grades or categories of Solid Waste that require special handling or methods of disposal; provided, however, consistent with the requirements under the Articles of Incorporation of the Authority, (i) the Disposal System Fee schedules so adopted by the Authority 19 I-1362127.6 shall at all times be identical with respect to all SPSA Members that have entered into a Post-2018 Use & Support Agreement, including the Member Locality, for so long as such SPSA Members (including the Member Locality) remain a party to a Post-2018 Use & Support Agreement, and (ii) with respect to all SPSA Members that have entered into and remain parties to a Post-2018 Use & Support Agreement, the Disposal System Fee schedules so adopted by the Authority shall in no event be based upon or distinguish between any such SPSA Members on the basis of the Delivery Point used by any such SPSA Member or the distance of any such SPSA Member from any such Delivery Point. (b) The Authority shall invoice the Member Locality for all Disposal System Fees on a monthly basis, within ten (10) business days after the end of each month during the Term. Invoices will (i) reflect the total Municipal Solid Waste (or other applicable Solid Waste) tonnage received by the Authority from the Member Locality during the billing period, together with such other relevant information as the Authority and the Member Locality may deem appropriate, and (ii) include the Authority’s calculation of the Disposal System Fees payable by the Member Locality for such billing period. Invoices shall be due and payable, without offset, on or before (and in any event no later than) the last business day of the month immediately following the month covered by the invoice, except to the extent any such invoices are then subject to a good faith dispute between the parties. Any Disposal System Fees not timely paid will be subject to “late payment” penalties and/or interest in accordance with the policies and procedures of the Authority that are then in effect and set forth in the Strategic Operating Plan and/or the Disposal System Fee schedule. (c) The Member Locality shall have the right, no more often than twice per calendar year during the Term of this Agreement, on no less than thirty (30) days’ prior written 20 I-1362127.6 notice, to inspect (or to appoint an independent accounting firm to inspect) any and all books and records of the Authority relating to this Agreement for any legitimate, bona fide business purpose, including, but not necessarily limited to, auditing the accuracy of the Authority’s invoices and calculations of Disposal System Fees payable hereunder; provided, the Member Locality may not compensate any accounting firm hired for such inspection or audit on a contingency basis. Any audits and inspections pursuant to this Agreement shall be conducted during normal business hours solely at the Authority’s offices, with minimal interference to the Authority’s normal business operations. In the event any such audit reveals that the Authority has overcharged the Member Locality during the period audited, then (i) the Authority shall credit the amount that the Member Locality overpaid to the next invoice submitted by the Authority to the Member Locality; and (ii) if the Authority has overcharged the Member Locality by more than five percent (5%), in the aggregate, for the period audited, then (x) the amount credited to the Member Locality shall also include interest at a rate of three percent (3%) per annum, between the date of the overpayment and the date the overpayment is so credited to the Member Locality, and (y) the Authority shall reimburse the Member Locality for the reasonable costs and expenses of any such audit. Except to the extent otherwise expressly provided in the foregoing, the costs and expenses of any such audit will be borne entirely by the Member Locality. 3. Title to Waste. The Member Locality hereby assigns and transfers to the Authority, and the Authority hereby accepts, all right, title and interest in and to all Municipal Solid Waste (and other applicable Solid Waste, expressly excluding Hazardous Waste) delivered to and accepted by the Authority pursuant to this Agreement, and such ownership shall vest in the Authority when recorded by the Authority’s weighing scales or other measuring devices at a Delivery Point; provided, however, that inoperability of the Authority’s weighing scales or 21 I-1362127.6 measuring devices shall not alter the transfer of title of Municipal Solid Waste (or other applicable Solid Waste) to the Authority if it is otherwise accepted by the Authority. The Member Locality further agrees to join with the Authority in defense of any adverse claim to ownership of Municipal Solid Waste (or other applicable Solid Waste). 4. Hazardous Waste. The Member Locality shall not knowingly deliver or cause to be delivered to the Authority, or otherwise knowingly cause or allow to enter into the Disposal System, any Hazardous Waste. The Member Locality further agrees that in no event and under no circumstances shall title to any Hazardous Waste pass to the Authority. Upon receipt into the Disposal System of any Hazardous Waste from the Member Locality, the Authority shall provide the Member Locality with all reasonably available evidence identifying the Member Locality as the source of such Hazardous Waste. Thereafter, the Member Locality, with the reasonable assistance and cooperation of the Authority in loading the waste, shall expeditiously and within a reasonable period of time under the circumstances remove or arrange for removal of the Hazardous Waste from the Disposal System at no expense to the Authority. Notwithstanding the foregoing, (a) if the Authority in its reasonable discretion deems it necessary or appropriate for the protection of property, human health or the environment, or if the Member Locality fails to promptly remove Hazardous Waste in accordance with the foregoing requirements, then the Authority, acting through itself or others, may (i) remove and dispose of the Hazardous Waste and (ii) charge the Member Locality the reasonable costs and expenses paid or otherwise incurred by the Authority in connection with the removal and disposal of such waste, which such costs and expenses shall be added to the Member Locality’s invoice for the month(s) in which they are incurred; and (b) the Member Locality shall have the right to dispute that it is the source of the Hazardous Waste (or that Solid Waste designated by the Authority as Hazardous Waste does in fact constitute Hazardous 22 I-1362127.6 Waste hereunder), and any action undertaken by the Member Locality (or the Authority) in removing or arranging for the removal of Solid Waste designated by the Authority as Hazardous Waste shall not constitute a waiver of such rights. 5. Other Excluded Waste. In addition to and not in limitation of the restrictions on Hazardous Waste set forth in the foregoing Section 4, the Member Locality shall not knowingly deliver or cause to be delivered to the Authority, or otherwise knowingly cause or allow to enter into the Disposal System, any Excluded Waste, in each case except (a) in accordance with the policies and procedures set forth in the Strategic Operating Plan (for example, policies and procedures regarding the delivery of Household Hazardous Waste) or (b) as otherwise expressly authorized and approved by the Board of Directors of the Authority pursuant to an amendment to this Agreement duly adopted in accordance with the express terms of Article VI.8 below. 6. Special Covenant. Under this Agreement, the Member Locality has committed to deliver or cause to be delivered to the Authority all of its Municipal Solid Waste, which in accordance with the definition set forth above consists of all Solid Waste the collection of which is controlled by the Member Locality. In light of this commitment and the corresponding obligations of the Authority hereunder, and the impact on the other SPSA Members of the Member Locality’s failure to fulfill such commitment, the Member Locality agrees that for so long as this Agreement remains in effect the Member Locality shall not relinquish control of the collection of residential Solid Waste. ARTICLE VI GENERAL 1. Entire Agreement. As of, and from and after, the Agreement Effective Date, the provisions of this Agreement, including the Strategic Operating Plan and any other schedules, 23 I-1362127.6 appendices or exhibits hereto, do and shall constitute the entire agreement between the parties with respect to the subject matter hereof and supersede any and all prior or contemporaneous negotiations, understandings or agreements with respect to the subject matter hereof. (Without limiting the generality of the foregoing, the parties hereby acknowledge and agree that, as of the Agreement Effective Date, (a) the Legacy Use & Support Agreement between the parties shall terminate and be of no further force or effect and (b) this Agreement shall supersede the Legacy Use & Support Agreement between the parties in its entirety.) However, nothing in this Agreement shall be construed to limit the right of the parties to enter into agreements, contracts or arrangements with respect to the provision and use of Ancillary Waste Disposal Services, the use, maintenance and/or operation of Disposal System facilities or other authorized activities; provided, however, such other agreements, contracts and arrangements shall (i) where related to the provision of Ancillary Waste Disposal Services be subject to the terms of Section 6 under Article IV above, and (ii) in any event be subject to approval by the Board of Directors of the Authority in accordance with applicable Law. It is agreed that this Agreement has been jointly negotiated and prepared by both parties, and this Agreement shall not be construed against either party by reason of that party’s participation in the drafting or preparation of this instrument. 2. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the Commonwealth of Virginia. 3. Dispute Resolution. Any dispute, claim or controversy arising under, out of, in connection with or relating to this Agreement, or the transactions contemplated hereby, or any course of conduct, course of dealing, or actions of any party relating to this Agreement, including any claim based on or arising from an alleged tort (each, a “Dispute”), shall be resolved exclusively in the following manner: 24 I-1362127.6 (a) Pre-Mediation Procedures. Prior to resorting to litigation in respect of any Dispute hereunder, each party shall cause one or more senior members of its executive staff (e.g., City/County Manager or Assistant City/County Manager, in the case of the Member Locality, and Executive Director or Deputy Executive Director, in the case of the Authority) to first meet with senior members of the executive staff the other party and attempt to resolve the Dispute by mutual agreement. The initial meeting under this Section 3(a) shall be held within ten (10) days after the request by either party for any such meeting. (b) Mediation. (i) If the Dispute is not resolved by the parties under Section 3(a) above, either party may submit to the other party a written request for non-binding mediation of such Dispute. Within fifteen (15) days after such written request is made, the parties shall attempt to agree on a single mediator. If the parties cannot agree on a mediator within such period of time, then the mediator shall be jointly designated by similarly-situated outside advisors of the parties (for instance, the respective accounting firms or law firms then providing services to the respective parties). (ii) Mediation shall take place at the place or places and at the time or times set by the mediator, but shall not be held in public. The rules of procedure, evidence and discovery with respect to any mediation shall be as directed by the mediator. Neither party may be represented at hearings before the mediator by an attorney, but each party may consult with counsel outside the hearing room and counsel may assist in preparing any written materials to be used in the mediation, including statements and briefs. 25 I-1362127.6 (iii) The mediator shall facilitate communications between the parties and assist them in attempting to reach a mutually acceptable resolution of the Dispute by agreement. The mediator shall make no binding determinations, findings, or decisions. (iv) The mediator’s expenses shall be borne equally by the parties. (v) At any point in the mediation process after the initial meeting with the mediator, either party may declare in writing that an impasse exists, and thereafter either party may proceed to litigation in accordance with the terms of Section 3(c) below. (c) Litigation. Any Dispute not resolved in accordance with the foregoing provisions shall be resolved by a United States federal court or Virginia state court sitting in the City of Norfolk in the Commonwealth of Virginia (the “Chosen Courts”), and each party hereby irrevocably (i) consents and submits to the exclusive jurisdiction of the Chosen Courts for any suit, action or proceeding initiated in respect of such Dispute, (ii) waives any objection to the laying of venue of any such suit, action or proceeding brought in the Chosen Courts, including any claim that any such suit, action or proceeding brought in the Chosen Courts has been brought in an inconvenient forum, and waives the right to raise any such objection, and (iii) waives all right to trial by jury in any suit, action or proceeding initiated in respect of such Dispute. (d) Equitable Relief. The parties specifically and expressly acknowledge and agree that the breach by either party of certain provisions of this Agreement will cause the other party irreparable harm. Therefore, in addition to but not in limitation of any other remedy to which the non-breaching party may be entitled, if either party breaches or threatens to breach any such provisions hereof, the other party shall be entitled to obtain equitable relief for any such breach or threatened breach so that the party that is breaching, has breached or has threatened to breach this Agreement shall be required to cease and desist immediately from such activities (it being agreed 26 I-1362127.6 that damages alone would be inadequate to compensate the other party and would be an inadequate remedy in such event). 4. Notice. Any notice or other communication required or permitted to be given under this Agreement shall be given in writing and delivered in person, sent via confirmed facsimile or delivered by nationally-recognized courier service, properly addressed and stamped with the required postage, to the applicable party at its address specified below and shall be deemed effective upon receipt of confirmation of delivery (or attempted delivery that is refused by the recipient). Either party may from time to time change the individual designated to receive notices or its address by giving the other party notice of the change in accordance with this Section 4. The current addresses for the parties are as follows: The Authority Member Locality Southeastern Public Service Isle of Wight County Authority of Virginia Attn: County Administrator Attn: Executive Director P.O. Box 80 723 Woodlake Drive Isle of Wight, Virginia 23397 Chesapeake, Virginia 23320 Fax: 757-965-9528 Fax: 757-357-9171 5. No Waivers. The failure of either party to object to a breach or default by the other party under this Agreement shall not constitute a waiver of that party’s rights with respect to any subsequent breach or default as to the same or any other obligation or condition of this Agreement. No provisions of this Agreement shall be deemed waived without express written consent of waiver. 6. Severability. If any provision of this Agreement shall be determined to be invalid, illegal or unenforceable in any respect, the parties shall make good faith efforts to modify this Agreement in a manner that will implement the intent of the parties as embodied herein. Any 27 I-1362127.6 resulting modification and the remaining provisions of the Agreement shall be valid and enforceable to the fullest extent permitted by law. 7. Assignment. Neither party may assign this Agreement without the prior written consent of the other party; provided, a permitted assignment shall not relieve a party of its obligations under this Agreement unless this Agreement (and all of such obligations) shall have been assumed by the assignee in a writing satisfactory to the other party in its sole discretion. Nothing in the foregoing shall limit or serve as a limitation on the Authority’s right to subcontract and/or delegate its obligations hereunder in accordance with the Strategic Operating Plan and/or Applicable Law. 8. Amendment. Any proposed amendment, modification, repeal or alteration, in whole or in part, of any material provision of this Agreement, including but not necessarily limited to provisions regarding the Designated Disposal Mechanism, Excluded Waste and the Special Termination Provision (each, a “Proposed Amendment”), shall be presented in writing for the first time at a regular meeting of the Board of Directors of the Authority. Any such Proposed Amendment may be considered and modified/supplemented at the meeting during which such Proposed Amendment was first presented, but a Proposed Amendment may not (and shall not) be acted upon by the Board of Directors until, at the earliest, the next regular meeting of the Board of Directors. In addition to and not in limitation of the foregoing notice requirements, no amendment, modification, repeal or alteration, in whole or in part, of this Agreement, or any provision hereof, shall be valid unless such amendment or modification (a) is set forth in writing and executed by both the Authority and the Member Locality and (b) has been authorized by a resolution approved by at least seventy-five percent (75%) of the Board of Directors of the Authority. 28 I-1362127.6 9. No Survival. All rights and obligations of the parties under this Agreement shall be extinguished and terminated in their entirety upon any termination or expiration of this Agreement in accordance with the terms hereof; provided, however, that termination or expiration of this Agreement shall not limit or prohibit either party from pursuing any remedies available to it at the time of or in connection with any such termination or expiration. 10. Acknowledgement. This Agreement reflects an arm’s-length transaction. Nothing herein shall create a fiduciary, partnership, joint venture or other agency relationship between the parties. This Agreement is not entered into for the benefit of, nor are any rights granted to, any third party except as may be expressly provided for herein (if at all). Neither party may withhold or offset any amount due or owed to the other party under this Agreement against any amount due from (or allegedly due from) the other party, whether under this Agreement or otherwise. 11. Force Majeure. Failure of either party to perform under this Agreement, including but not limited to failure of the Member Locality to deliver or cause to be delivered Municipal Solid Waste to the Authority and/or inability of the Authority to accept Municipal Solid Waste at any or all Delivery Points, but expressly excluding payment of monies owed hereunder, by reason of Force Majeure shall not constitute default under or be cause for termination of this Agreement. However, the party so failing to perform by reason of Force Majeure shall notify the other party of the failure as promptly as practicable under the circumstances, including the reasons therefor, and shall use reasonable best efforts to correct such failure to perform as promptly as practicable under the circumstances. “Force Majeure” shall mean any cause beyond the reasonable control of the party whose performance is affected hereunder, including but not limited to acts of God, war, terrorism, riot, fire, explosion, storm, flood, labor disputes, inability to obtain or use fuel, power or raw materials, shortage or failure of the usual means of transportation, injunction, accident or 29 I-1362127.6 breakdown of machinery or equipment, or failure of performance by any Designated Disposal Mechanism that is not owned and operated by (or otherwise under the direct control of) the Authority, whether or not any such occurrence is caused by the negligence, active or otherwise, of the affected party, its agents and/or employees. 12. Counterparts. This Agreement may be executed in multiple counterparts and by each party on a separate counterpart, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument. [Remainder of page intentionally left blank – signature page(s) follow] 30 I-1362127.6 IN WITNESS WHEREOF, the Authority and the Member Locality have caused this agreement to be executed on their behalf and their seals to be affixed and attested by officials thereunto duly authorized, all as of the day and year first above written. ATTEST: SOUTHEASTERN PUBLIC SERVICE AUTHORITY OF VIRGINIA By: ATTEST: COUNTY OF ISLE OF WIGHT, VIRGINIA By: Rex Alphin, Chairman Board of Supervisors APPROVED AS TO FORM: Mark C. Popovich, County Attorney I-1362127.6 SCHEDULE I 1 STRATEGIC OPERATING PLAN 2 [TO BE ADDED]3 I-1362127.6 SCHEDULE II SPECIAL TERMINATION PROVISION 1. Termination Notice. If the Member Locality desires to terminate this Agreement prior to the expiration of the Term, the Member Locality shall provide the Authority with written notice of its intention to so terminate this Agreement prior to the end of the Term, specifying the date on which the termination is to be effective (the “Termination Notice”); provided, unless otherwise agreed by the Authority, the effective date of any termination of this Agreement hereunder must (and shall) be at least two (2) years after the date of the Termination Notice delivered by the Member Locality. Following the delivery of a Termination Notice by the Member Locality hereunder, the parties shall thereafter continue to perform all of their respective obligations and comply with all of their respective covenants and requirements under this Agreement until the effective date of the termination of this Agreement and withdrawal of the Member Locality from the Authority hereunder. 2. Early Termination Payment. (a) (i) As a condition to early termination of this Agreement, and in order to satisfy the requirements of the amendment to the Virginia Water and Waste Authorities Act set forth in the Virginia Acts of Assembly - 2000 Session, Chapter 596, Approved April 7, 2000, as may be amended from time to time (the “Withdrawal Provision”), the Member Locality shall pay a termination payment calculated in accordance with the terms of this Special Termination Provision (the “Early Termination Payment”). (ii) Specifically, the Early Termination Payment shall equal the Present Value Amount of the Member Locality’s Pro Rata Share of the Net Financial Obligations of the II-2 I-1362127.6 Authority, each as of the date of the Termination Notice, as further defined and determined in accordance with the following: (A) The “Net Financial Obligations” of the Authority shall equal (1) all financial obligations of the Authority that are outstanding or otherwise exist as of the date of the Member Locality’s Termination Notice, including, but not necessarily limited to, (x) the principal and interest on all outstanding bonds and other indebtedness of the Authority, (y) all projected closure and post-closure financial obligations of the Authority with respect to the Disposal System (including but not necessarily limited to the Regional Landfill and any Delivery Points then maintained (owned/operated) by the Authority) and (z) all remaining financial obligations under contractual commitments (written and/or oral) then in effect, including but not limited to, waste-disposal contracts, vendor contracts, etc., minus (2) any cash or other immediately available funds that, as of the date of the Member Locality’s Termination Notice, the Authority has on hand and has specifically designated for use in connection with the satisfaction of specified financial obligations of the Authority (by way of example, in calculating Net Financial Obligations hereunder, the projected closure and post-closure financial obligations of the Authority with respect to the Disposal System would be reduced by the actual amount of any cash included within any “Landfill Closure Fund” maintained by the Authority in respect of such obligations as of the date of such Termination Notice). (B) The Member Locality’s “Pro Rata Share” shall equal fraction, (i) the numerator of which shall be the total number of tons of Municipal Solid Waste delivered to the Authority by or on behalf of the Member Locality during the sixty (60) calendar month period ending on the last day of the month immediately preceding the month in which the Termination Notice was received by the Authority, and (ii) the denominator of which shall be the II-3 I-1362127.6 total number of tons of Solid Waste delivered to the Authority during such sixty (60)-calendar month period by or on behalf of all SPSA Members that are members of the Authority as of the date of such Termination Notice (for clarity, the “historical” Solid Waste tonnage of any SPSA Member that has terminated its Post-2018 Use & Support Agreement as of the date of the Member Locality’s Termination Notice would be excluded from the denominator in the foregoing formula). (C) The “Present Value Amount” shall equal the net discounted value of the Member Locality’s Pro Rata Share of the Net Financial Obligations of the Authority, discounted at the rate of interest on the 10-year U.S. Treasury Bills as listed in the Wall Street Journal on the date of the Member Locality’s Termination Notice. 3. Calculation of Financial Obligations and Early Termination Payment. (a) Within six (6) months after its receipt of the Member Locality’s Termination Notice, the Authority shall provide to the Member Locality a written calculation of (i) the Net Financial Obligations of the Authority as of the date of such Termination Notice, (ii) the Member Locality’s Pro Rata Share of such Net Financial Obligations, and (iii) the corresponding Early Termination Payment payable by the Member Locality, as calculated based on the Present Value Amount of the Member Locality’s Pro Rata Share of such Net Financial Obligations. (b) If the Member Locality disagrees with the Authority’s calculation of the Net Financial Obligations, the Member Locality’s Pro Rata Share of such Net Financial Obligations and/or the Early Termination Payment, the Member Locality shall notify the Authority in writing of such disagreement within thirty (30) days after receipt of the Authority’s calculation(s) thereof, which written notice shall specify the nature of the dispute in as much detail as II-4 I-1362127.6 possible. Thereafter, the parties shall use their best efforts to resolve such disagreement through the joint consultation of the Authority and the Member Locality and arrive at a definitive calculation of the Net Financial Obligations, the Member Locality’s Pro Rata Share of such Net Financial Obligations and/or the Early Termination Payment, as applicable (collectively, the “Final Termination Amounts”). Failing timely objection by the Member Locality, the Net Financial Obligations, the Member Locality’s Pro Rata Share of such Net Financial Obligations and the Early Termination Payment calculated by the Authority shall be deemed to be (and shall, for all purposes hereunder, be) the Final Termination Amounts. (c) (i) If the Member Locality raises a timely objection to the Authority’s calculation of the Net Financial Obligations, the Member Locality’s Pro Rata Share of such Net Financial Obligations and/or the Early Termination Payment, and the Member Locality and the Authority are unable to mutually arrive at the Final Termination Amounts within sixty (60) days after the date the Authority receives notice of the Member Locality’s objection, such matter shall thereupon be submitted to the Independent Accounting Firm for definitive calculation of the Final Termination Amounts. The “Independent Accounting Firm” shall be a public accounting firm (A) that is not then providing, and has not at any time in the immediately preceding three (3) years provided, accounting, audit or other related services to either party; and (B) that either (x) is mutually agreed upon by the parties, or (y) if the parties are unable to agree upon an accounting firm, is jointly designated by the accounting firms then utilized by the parties for their respective accounting, audit and related financial services. The Independent Accounting Firm shall be designated by one of the foregoing methods within ten (10) days after the expiration of the sixty (60)-day period provided for above. II-5 I-1362127.6 (ii) Within ninety (90) days after submission, the Independent Accounting Firm shall resolve any accounting issues in dispute and prepare and deliver in writing a definitive statement of the Final Termination Amounts. In preparing the Final Termination Amounts, the Independent Accounting Firm shall limit its work to resolving those accounting issues that are in dispute (and such other accounting issues as may be necessary to resolve those issues in dispute) in accordance with the definitions and terms set forth in this Agreement (including in particular this Special Termination Provision) and otherwise in accordance with GAAP. (iii) The definitive statement of the Final Termination Amounts prepared by the Independent Accounting Firm shall be final and binding upon the parties, absent manifest error. The costs and fees of the Independent Accounting Firm shall be borne and paid solely by the Member Locality. 4. Final Notice; Revocation. (a) The Member Locality must give the Authority written final notice of its planned termination of this Agreement hereunder. Such final notice of termination must be delivered by the Member Locality no later than six (6) months after the Final Termination Amounts described above have been definitively determined (whether by agreement of the parties, by the Independent Accounting Firm or otherwise). (b) Notwithstanding anything to the contrary in the foregoing or anywhere else in this Agreement, the Member Locality shall have the right, at any time before the date that is six (6) months prior to the effective date of termination specified in its original Termination Notice, to revoke its Termination Notice by providing the Authority with written notice of such revocation, in which case (i) the Member Locality shall remain a SPSA Member and (ii) this Agreement shall II-6 I-1362127.6 remain in full force and effect in accordance with its terms; provided, however, that the Member Locality shall, upon demand by the Authority, reimburse the Authority for all costs and expenses incurred by the Authority in connection with its preparation for the termination of this Agreement, including but not limited to all applicable legal, accounting, consulting and other advisory fees and expenses. 5. Payment Terms; Satisfaction of Contractual Obligations. (a) The Member Locality shall pay its Early Termination Payment, whether determined by agreement of the parties, by the Independent Accounting Firm or otherwise, to the Authority in a single lump sum payment on the effective date of the termination of this Agreement. (b) If the Member Locality has otherwise satisfied all payment and other obligations incurred under this Agreement between the date of its Termination Notice and the effective date of termination of this Agreement hereunder, then (i) the Authority’s receipt of such Early Termination Payment shall be deemed to (and shall) satisfy all obligations of the Member Locality under or otherwise in respect of paragraph 2 of the Withdrawal Provision with respect to the termination and satisfaction of all written obligations incurred by the Member Locality while it was a SPSA Member, and (ii) no such written obligations so incurred by the Member Locality shall thereafter remain (or be deemed to remain) in effect; provided, however, that the Member Locality is and shall be solely responsible for complying with all other applicable terms and requirements of the Withdrawal Provision. 6. Special Acknowledgement. The parties recognize that the Authority will incur various costs and make capital and operational decisions throughout the Term of this Agreement based upon the expectation of providing services to the Member Locality, and to the other SPSA Members, throughout the Initial Term or Renewal Term of this Agreement then in effect, and that II-7 I-1362127.6 the decision of the Member Locality to terminate this Agreement prior to the expiration thereof will or may have a variety of financial and operational consequences to the Authority. The parties further recognize that those consequences, and their costs, cannot be easily determined, and therefore the parties agree that the Early Termination Payment calculated hereunder constitutes a fair, reasonable and equitable quantification of the costs to the Authority of such consequences. Accordingly, (a) it is the intention of the parties to provide in this Special Termination Provision a means for the Member Locality to terminate this Agreement prior to its scheduled expiration date without financial harm or loss to the Authority or the other SPSA Members, (b) the provisions of this Special Termination Provision shall be construed, and the actions and determinations of the parties required hereunder shall be taken, consistent with that intent, and (c) the parties acknowledge and agree that the terms and conditions of this Special Termination Provision, including but not limited to the Early Termination Payment obligation provided for hereunder, are fair, reasonable and in the best interests of the Authority and the SPSA Members. 7. Additional Termination Conditions. (a) As a further condition to effective termination of this Agreement prior to its scheduled expiration date, on or prior to the effective date of termination of this Agreement the Member Locality shall at its sole expense take all action required for it to withdraw from membership in the Authority, including, but not limited to, (i) satisfying all applicable procedural and other requirements set forth in the Withdrawal Provision, including paragraphs 2, 3 and 4 thereof, and (ii) assisting the Board of Directors of the Authority in adopting any amendment to the Articles of Incorporation of the Authority that is or may be required to remove the Member Locality as a SPSA Member. II-8 I-1362127.6 (b) The parties acknowledge and agree that termination of this Agreement shall not, alone, result in the termination of any other contract or agreement (if any) between the Authority and the Member Locality. (c) Following termination of this Agreement in accordance with the terms of this Special Termination Provision, the Member Locality may not (and shall not) accept for disposal any Solid Waste delivered by or on behalf of any other city or county that is a SPSA Member for so long as such cities and counties remain SPSA Members. [END] I -1371683.5 STRATEGIC OPERATING PLAN* MEMBER MUNICIPALITIES:** CITIES OF CHESAPEAKE, FRANKLIN, NORFOLK, PORTSMOUTH, SUFFOLK AND VIRGINIA BEACH, AND THE COUNTIES OF ISLE OF WIGHT AND SOUTHAMPTON Effective Date:_________________ (Covering SPSA Fiscal Year _____) * Note: Except where noted, current draft is based on SPSA’s existing policies and procedures. ** Note: Member Municipalities to be updated to reflect any current Members that elect NOT to continue with SPSA in the post-2018 period. SOUTHEASTERN PUBLIC SERVICE AUTHORITY OF VIRGINIA I -1371683.5 TABLE OF CONTENTS 1.0 Introduction ........................................................................................................................1 2.0 Guiding Principles .............................................................................................................1 3.0 Organizational Structure ..................................................................................................5 4.0 Operation and Use of Facilities .......................................................................................13 5.0 Designated Disposal Mechanism; Planning Horizon ....................................................18 6.0 Basis of Accounting and Financial Reporting ...............................................................21 7.0 Rates, Fees and Charges for Solid Waste Management ...............................................22 8.0 SPSA’s Role in a Storm Event ........................................................................................23 9.0 Policies and Procedures to be Maintained .....................................................................24 10.0 Revisions to Strategic Operating Plan ...........................................................................25 Appendix A: Definitions Appendix B: Northwest River Watershed I -1371683.5 STRATEGIC OPERATING PLAN SOUTHEASTERN PUBLIC SERVICE AUTHORITY 1.0 INTRODUCTION The Southeastern Public Service Authority of Virginia (“SPSA” or the “Authority”) is a public body politic and corporate and a political subdivision of the Commonwealth of Virginia. SPSA was created in 1976 under the Virginia Water and Waste Authorities Act for the purpose of operating a regional solid waste disposal system for its eight (8) members including the Cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach and the Counties of Isle Of Wight and Southampton (the “Member Localities”).# This Strategic Operating Plan (“SOP”) describes and outlines SPSA’s operations and responsibilities as it pertains to the region’s solid waste disposal system. This SOP will be reviewed by the Board of Directors of SPSA on at least an annual basis and, in connection with such reviews, may be revised, amended and/or modified by the Board of Directors in accordance with the terms of Section 10.0 below. Furthermore, from and after January 25, 2018, this SOP will be attached to and incorporated by reference in the “new” Use & Support Agreements entered into by SPSA and the Member Localities effective as of such date. Core Purpose: Management of safe and environmentally sound disposal of regional waste. Philosophy: SPSA will be a service-oriented, quality-focused organization that continually seeks improvement and cost effectiveness. Cores Values: Integrity, excellence, accountability, cooperation, teamwork. Core Business: Create, manage and maintain an infrastructure for the disposal of regional waste, including through the operation and management of the regional landfill and all transfer stations and other delivery points, and provide for the transportation of processible waste. Certain capitalized terms not otherwise defined in this SOP have the meanings set forth in Appendix A attached hereto. 2.0 GUIDING PRINCIPLES SPSA is a service organization that provides waste disposal and associated services to its member communities – the Member Localities – and other users of its Disposal System. SPSA’s single most important priority is to satisfy the waste-disposal needs of the Member Localities, and accordingly SPSA’s primary guiding principle is to endeavor, at all times, to provide the highest quality of services in meeting such member needs at the lowest reasonable cost. Other # Note: Member Localities to be updated to reflect any current Members that elect NOT to continue with SPSA in the post-2018 period. 2 I -1371683.5 principles, policies and procedures that SPSA has adopted to fulfill its highest priority, as stated above, include among others the following: • SPSA will plan, construct and operate its Disposal System in a manner designed to ensure that Member Localities have viable, cost-effective Solid Waste disposal options for at least the next 20-plus years, consistent with the requirements of the Regional Solid Waste Management Plan for Southeastern Virginia prepared on behalf of SPSA, and will periodically revaluate/reassess (and as and when necessary and appropriate modify) its Disposal System to ensure that SPSA is adapting to evolving waste-disposal needs of its Member Localities. • SPSA will continually perform internal reviews, and adapt its policies and procedures as appropriate, in a manner designed to ensure it is utilizing best management practices in all facets of its operation of the Disposal System to ensure the highest level of service at the lowest reasonable cost. • SPSA previously implemented and will continue to maintain an overall “Five-Year Strategic Plan”, which is and will continue to be reviewed annually by Executive Staff and the Board of Directors to determine whether amendments are appropriate. • SPSA recognizes the differences in the waste-disposal needs of its Member Localities and strives to satisfy differing member needs in a cost-effective way. Said differently, SPSA realizes that a “one-size-fits-all” approach is insufficient given the divergent requirements of its members and, where possible in a cost-effective and efficient manner, identifies and implements procedures to address specific member needs. One example of such current measures utilized by SPSA is its flexibility with regard to its Delivery Points (transfer stations): its Member Localities typically utilize the Delivery Point(s) that are most convenient for their drivers, whether or not those stations fall within the geographic boundaries of the given member. Furthermore, SPSA will continually assess and adapt to changing member requirements through the implementation of new/additional procedures as appropriate. • SPSA regularly considers using third-party vendors when it is likely to result in reduced operating costs or other efficiencies. SPSA issues requests for proposals (RFPs) where appropriate that, among other benefits, are designed to ensure the best “outsourced” services at the lowest costs. Recent examples include: Liability and Property Insurance; Auditing Services; Health Insurance; Computer Software; and Financial/Banking Services. Going forward, SPSA will continue evaluating the use of third-parties where it identifies potential reductions in costs and/or other efficiencies through such outsourced services. • SPSA has not received any Public-Private Educational Facilities Infrastructure Act (“PPEA”) proposals since the Suffolk Energy Partners proposal regarding the purchase/sale of landfill gas (described below). However, Executive Staff recently updated SPSA’s own PPEA Guidelines to ensure compliance with the latest regulatory guidance, and the Board of Directors and Executive Staff will continue to accept and consider PPEA proposals as and when they are received. 3 I -1371683.5 • Consistent with other regulatory requirements, SPSA engages and will continue to engage outside expert services to evaluate and report, at least annually, on available capacity at the Regional Landfill, including estimates as to the remaining “expected life” of the facility, taking into consideration -- and projecting -- future changes in the quantity of waste disposed of in its landfill. • SPSA maintains records of its costs, revenue, debt and capital expenses by fiscal year for each operating program, as well as records of costs for each individual capital project. These records are maintained in accordance with customary business and accounting practices, and such financial records are reported on -- with relevant supporting information provided -- monthly during regular Board meetings. This detailed financial record-keeping also facilitates SPSA’s preparation of reliable, accurate and balanced annual budgets, and will remain a fundamental aspect of SPSA administration at all times going forward. • SPSA also maintains and will continue to maintain a detailed Financing Plan that includes a plan for the retirement of all outstanding debt and a plan for the funding of all planned capital projects. The Financing Plan is approved by the Board of Directors each year, including any funds designated for capital projects, and reports regarding SPSA’s compliance with the Plan are and will continue to be provided to the Board on a regular basis. Similarly, the Debt Retirement Plan is approved each year by the Board as part of SPSA’s annual budget. All Plans are and, to the extent appropriate, will continue to be reviewed annually by a certified public accounting firm as part of SPSA’s annual financial audit. • In addition to its financial audits, SPSA may also from time to time, where circumstances warrant or where Executive Staff or the Board of Directors otherwise deem it appropriate or beneficial to the organization, conduct independent performance audits with respect to its operations. • Contrary to SPSA policy for much of its existence before 2010, under current Board and Executive Staff leadership SPSA has not issued any debt whatsoever and, moreover, current policy favors avoiding new debt in favor of a “pay-as-you-go” practice for even its most significant capital improvements. Furthermore, consistent with applicable law, SPSA has implemented and will continually maintain in effect appropriate policies to (i) prohibit the issuance of long-term bond indebtedness to fund operational expenses and (ii) require that, prior to issuance of new debt, the Board of Directors perform a due diligence investigation regarding the appropriateness of issuing the debt, including an analysis of the costs of repaying the debt, which would then be certified by an external certified public accountant, reviewed by the Board and, finally, subjected to a vote requiring a minimum approval of seventy-five percent (75%) of the Board of Directors. • SPSA strives to maintain its operations through staffing that reliably provides SPSA services to the Member Localities, and other users of the Disposal System, with the lowest “headcount” reasonably possible in light of its obligations. Personnel and 4 I -1371683.5 staffing needs are evaluated constantly and changes are and will continue to be made promptly as and when circumstances require. • SPSA has embraced the guiding principle of openness and transparency in its operations and management. Executive Staff and legal counsel update the Board of Directors and, where appropriate, the Member Localities on at least a monthly basis with regard to all material developments, whether in operations, relations with the Members themselves and/or with vendors and other customers, such as the United States Navy. Where an issue arises in any of these relationships, Executive Staff, the Board and counsel thoughtfully evaluate the range of possible solutions, as well as the applicable costs and other implications of the situation, before arriving at a decision on how to best address the matter. SPSA will continually endeavor to ensure that its Board is the most informed and involved governmental agency in the region. • SPSA is well-positioned to monitor, evaluate and adapt to changes in the waste- disposal industry, and regularly seeks and will continue to request external, expert guidance on emerging technologies and other relevant developments in its field, with the enduring goal of maintaining state-of-the-art, efficient and effective operations in performing its services to the Member Localities and otherwise carrying out its mission. • As noted above, SPSA’s core purpose is management of safe and environmentally sound disposal of regional waste, and SPSA devotes the majority of its time and effort to activities associated with its purpose. Of course, to the extent not inconsistent with that core purpose, SPSA may from time to time consider implementation and performance of additional waste disposal services, beyond its core function of disposal of regional waste, where circumstances warrant. (For example, yard debris disposal and recycling are examples of services that SPSA has provided for its members in the past, and these and other “ancillary” services may in fact be worthy endeavors in the future.) However, before implementing any such additional waste disposal services, Executive Staff and the Board of Directors will undertake a detailed and thorough evaluation -- including accounting and financial diligence -- to ensure cost-effectiveness, as well as operational review to confirm SPSA’s ability to efficiently and effectively provide such services. Any “non-core” services would likely require separate contracts to ensure all parties’ interests are adequately protected, and ultimately Board approval would be required for SPSA to undertake any activities not associated with its primary role. • Finally, to reiterate a principal tenet of SPSA’s governance, its first responsibility is to satisfy the waste-disposal needs of its Member Localities by providing the highest quality of services at the lowest reasonable cost. However, to the extent not inconsistent with or adverse to its obligations to SPSA members, SPSA may provide services to commercial and other non-municipal customers. Such services will not under any circumstances subordinate SPSA’s commitment to its members, nor will the Disposal System Fees paid by the Member Localities “subsidize” artificially low rates for such commercial and other customers. Instead, to the extent undertaken, SPSA would strive to provide commercial and other customers with the same quality services 5 I -1371683.5 as its members enjoy at commercially reasonable rates, which should not only benefit SPSA and such other customers but also the Member Localities by alleviating waste- disposal burdens and obligations which the members might otherwise be required to manage. 3.0 ORGANIZATIONAL STRUCTURE SPSA is managed by a 16-member Board of Directors, composed of eight (8) members appointed by the Governor of Virginia and eight (8) “ex-officio” members employed and appointed by each of the Member Localities. The Board of Directors, in turn, appoints an Executive Director responsible for the direct hire and supervision of all other SPSA employees, in addition to the day-to-day operations of the Authority. SPSA is organized under five (5) distinct divisions: 1. Administrative Division: SPSA’s Administrative Division supports the entire Disposal System. It includes the Executive Office, Human Resources, Accounting, Purchasing, Information Technology, the Regional Office Building and a Safety Department. 2. Fleet Maintenance Division: The Fleet Maintenance Division provides preventive maintenance and repairs to approximately 245 pieces of rolling stock equipment utilized by SPSA in its operations. SPSA currently operates two maintenance facilities: (i) one large 14-bay facility located at the Operations Center on Victory Boulevard in Portsmouth and (ii) one 2-bay facility located at the Regional Landfill in Suffolk. The majority of the equipment is serviced and repaired at the Portsmouth facility. The types of equipment include track dozers and excavators, compactors, articulating dump trucks, wheeled loaders, skid steers, Class 8 tractors, Class 6 vehicles, trailers, pickup trucks and a variety of smaller construction equipment. 3. Regional Landfill Division: The Regional Landfill Division consists of landfill operation, environmental management and the tire shredder operation. a. Landfill Operation The Regional Landfill is located on an 833-acre parcel off the merged US Routes 58, 13 and 460 in Suffolk, Virginia (mailing address is 1 Bob Foeller Drive). Facilities at the Regional Landfill include but are not limited to: Closed landfill Cells I through IV – 106 disposal acres Active landfill Cells V and VI – 43.8 and 41.3 disposal acres respectively Cell VII permitted expansion area – 54.2 disposal acres Unpermitted potential expansion area – 264.6 disposal acres Scale facility (also serves the Delivery Point for the Suffolk transfer station) Operations and vehicle maintenance building Household hazardous waste collection center Tire shredder Soils management facility (Clearfield MMG, tenant) Gas to energy plant (Suffolk Energy Partners, LLC, contractor and operator) 6 I -1371683.5 Currently, the Regional Landfill accepts only Construction and Demolition Debris (CDD), ash residue from the Wheelabrator WTE Facilities (discussed below), Non- Processible Waste not accepted at any Disposal System Delivery Point, gray soils and clean fill. Disaster Waste is not accepted. As noted above in its “Guiding Principles”, SPSA evaluates the capacity of the Regional Landfill annually, taking into consideration and projecting future changes in the quantity of waste disposed of in the landfill. The Regional Landfill also manages and maintains a “landfill gas recovery system”, which began full operation November 17, 1994. The system includes gas collection wells strategically located throughout Cells I – VI. In addition to the gas collection wells, the system includes gas collection piping, a flare system, condensate drains, a 3.2 MW power plant using four internal combustion engines and 2.3 miles of pipeline to sell gas to BASF. Landfill gas not supplied to BASF is used to generate electricity and some is flared if and when it is not otherwise able to be utilized. The landfill gas collection system is currently operated and maintained by Suffolk Energy Partners, pursuant to contract that continues through 2031. b. Environmental Management Department: The environmental management department is responsible for compliance matters throughout the SPSA organization. The department manages permits issued to SPSA and its facilities by the Virginia Department of Environmental Quality (DEQ), Hampton Roads Sanitation District (HRSD), the Virginia Department of Public Health and underground storage tank compliance at several facilities (each facility within the Disposal System maintains at least one permit, and the Regional Landfill is regulated by four permits). To ensure compliance, the environmental department conducts regular inspections at facilities and training of SPSA personnel. In addition, environmental staff manages the Environmental Management System (EMS). The EMS program consists of a multitude of documentation, training, and audit requirements throughout the organization. Lastly, environmental staff also conducts field monitoring for ground water, gas, drinking water, effluent and random load inspections designed to ensure permit compliance. This department is also responsible for the Household Hazardous Waste (HHW) and White Goods (metal recycling) programs maintained by SPSA i. Household Hazardous Waste: SPSA operates three HHW collection facilities. The HHW collection facility at the Regional Landfill in Suffolk is open full time, Monday through Friday, and a half-day Saturday. The remaining two facilities are open based upon a monthly recurring schedule. Additionally, from time to time, SPSA assists the Member Localities with special HHW collection events. Residents from all Member Localities may bring unwanted HHW to any of these HHW facilities to be disposed of safely, free of charge; however, the resident’s applicable Member 7 I -1371683.5 Locality is charged a Disposal System Fee for its residents’ use of the HHW facilities. Commercial HHW is NOT accepted at any HHW facility maintained by SPSA; instead, HHW generated commercially must be disposed of using a commercial waste disposal company. ii. White Goods: White goods or other metal-containing waste are collected at the Regional Landfill and are recycled with a local metal recycling company, and SPSA receives the then-current scrap metal price for the metal that is collected. Also, environmental staff is licensed to recover refrigerant from any applicable device received in the White Goods program. c. Tire Shredder Department: SPSA’s tire-shredding operations commenced in 1988 at the Regional Landfill, where residents of the Member Localities can dispose of automobile tires by bringing them to tire-shredder operations facility. SPSA employees de-rim tires on site and recycle the rims, and tires are then processed through the tire shredder. The finished product is used as supplemental daily landfill cover, and is also used in drainage projects, pipe substrate and to repair leachate seeps. 4. Delivery Point Division: The Delivery Point Division consists of transfer station operations and the scalehouse operations. a. Transfer Station Operations: i. Boykins - The station was opened in 1985 and consists of an elevated area where customers can deposit waste into a stationary compactor or two open-top roll-off containers. The station is permitted to accept 50 tons per day and is manned by Southampton County and serviced by SPSA. SPSA is responsible for dumping the containers and maintaining the facility equipment, buildings and grounds. The facility has one 40-yard compactor and two 40-yard open top containers for residential and municipal disposal. SPSA owns the improvements on the land at this transfer station, which is leased from a private citizen pursuant to a lease that expires March 31, 2025. ii. Chesapeake Transfer Station - This transfer station was built in 1984 and is located on a 4.75 acre parcel of land west of Greenbrier Parkway in the City of Chesapeake. The transfer station utilizes a bi-level, non- compacted, direct dump design consisting of one refuse hopper and a tipping area on the upper level and a “load out” area on the lower level. The facility has a maximum design capacity of 500 tons per day with a storage capacity of up to 150 tons at any given time. SPSA owns the improvements on the land at this transfer station, which is leased from the City of Chesapeake pursuant to a lease arrangement that continues until May 31, 2016. 8 I -1371683.5 iii. Franklin Transfer Station - This station was opened in 1985 and consists of an open tipping floor area screened with a fabric chain link fence and a prefabricated office building. Waste is dumped into the single hopper directly into open top transfer trailers and currently hauled to a non-SPSA landfill by a Wheelabrator contractor. The facility is permitted for 150 tons per day and capable of storing 50 tons at any one time. The station utilizes a drop and hook operation. SPSA owns the Franklin transfer station, including all land and improvements. iv. Isle of Wight Transfer Station - This station was opened in 1985 and consists of a push-wall transfer station with a three-sided metal building superstructure. Transfer trailers travel on a loading lane situated at a lower grade than the tipping floor so that the sides of the trailers are approximately 4 feet above the tipping floor, and a front- end loader lifts waste into the transfer trailers and which are then currently hauled to a non-SPSA landfill by a Wheelabrator contractor. The station is permitted for 150 tons per day, capable of storing 50 tons at any one time, and utilizes a drop and hook operation. SPSA owns the improvements on the land at this transfer station, which is leased from Isle of Wight County pursuant to a lease that expires on January 24, 2018. v. Ivor Transfer Station – This station was opened in 1985 and consists of an elevated area where customers can deposit waste into a stationary compactor or two open-top roll-off containers. The station is permitted to accept 30 tons per day and is manned by Southampton County and serviced by SPSA. SPSA is responsible for emptying the containers and maintaining the facility equipment, buildings and grounds. The facility has one 40-yard compactor and two 40-yard open top containers for residential and municipal dumping. SPSA owns the Ivor transfer station, including all land and improvements. vi. Landstown Transfer Station - This station opened in January 1993 and consists of an enclosed tipping floor with three hoppers for loading. The station operates 24 hours per day, with the exception of Sunday, and is permitted to accept 1500 tons per day. Waste is collected and stored on the tipping floor throughout the day then hauled at night. SPSA owns the improvements on the land, which is leased to SPSA by the City of Virginia Beach. The current lease expires December 30, 2017, though SPSA has a unilateral right to extend the lease for an additional 30 years by providing the City with 30 days’ notice. vii. Norfolk Transfer Station - This station opened in 1985 and consists of an enclosed tipping floor with three hoppers for loading. The station operates 24 hours per day Monday through Saturday, and half a day on Sunday, and is permitted to accept 1300 tons per day. Residents may use the station only from Noon to 4:00 p.m. on Saturday and Sunday, and the City of Norfolk pays the cost to operate the facility during 9 I -1371683.5 these hours. Waste is collected and stored on the tipping floor throughout the day then hauled at night. SPSA owns the Norfolk transfer station, including all land and improvements. viii. Oceana Transfer Station - This station was built by the City of Virginia Beach and opened in 1982. In 1987, SPSA bought the station facility for $1,000,000, but still leases the land -- which is owned by the Virginia Department of Transportation (VDOT) -- and pays rent of $1.00 per year under the lease. SPSA operates the station pursuant to its lease with VDOT (technically a “permit”), which can be terminated by VDOT upon 30 days’ notice to SPSA. The station has a design capacity of 500 tons per day, with the capability of storing 450 tons at any one time. The station utilizes a drop-and-hook system, which allows waste on the floor to be removed and placed in staged trailers for hauling at a later time. The station does not accept waste from residential customers. ix. Suffolk Transfer Station – This station, built in 2005, is located near the entrance to the Regional Landfill and consists of an enclosed tipping floor with two hoppers for loading. The station is permitted to accept 1300 tons per day. SPSA owns the Suffolk transfer station, including all land and improvements. b. Scalehouse Operations: SPSA’s scalehouse operation is responsible for ensuring the accurate measurement of (i) solid waste flowing through SPSA’s transfer stations to the Regional Landfill and the WTE Facilities in Portsmouth (the current Designated Disposal Mechanism) and (ii) the revenue generated from the disposal of waste. Scale attendants man scalehouses at the Chesapeake, Landstown, Norfolk, Oceana and Regional Landfill transfer stations and at the WTE Facilities in Portsmouth. The scalehouses in Franklin and Isle of Wight are manned by transfer station staff. SPSA’s scale attendants operate the scale recording devices to capture truck weights and process transactions, including truck information, customer account information, type of waste and associated tipping fee rate, methods of payment and credit card processing. These transactions are uploaded into SPSA’s accounting software for subsequent billing of SPSA’s customers. This data is also currently transmitted to Wheelabrator on a daily basis for their own use in billing Wheelabrator customers, such as private/commercial haulers. Scale attendants also handle phone calls to the various transfer stations as well as face-to-face interactions with the Member Localities, residents and private haulers to ensure that only solid waste meeting SPSA’s standards is accepted for disposal at SPSA facilities. 5. Transportation Division: The Transportation Division is currently responsible for conducting hauling operations transferring processible waste from the transfer stations to the WTE Facilities owned and operated by Wheelabrator. In addition to 10 I -1371683.5 transporting waste from the transfer stations, the transportation division staff operates roll-off trucks, a tanker and a low-boy trailer, and also hauls leachate from various transfer stations and sludge from the City of Norfolk’s Water Treatment Plan to the Regional Landfill. 11 I -1371683.5 SPSA’s Organizational Chart is illustrated as follows: 12 I -1371683.5 Board of Directors Executive Director Deputy Executive Director and Chief Financial Officer (Administration) Regional Landfill Environmental Transfer Stations Transportation Fleet Maintenance Accounting Scalehouse Operations Information Technology Purchasing Human Resources Safety 13 I -1371683.5 4.0 OPERATION AND USE OF FACILITIES 1. General The right to dispose of Solid Waste (excluding Hazardous Waste and certain other Excluded Waste, such as Disaster Waste) at the Delivery Points designated herein is available to any and all persons, corporations and governmental agencies without exclusion under the terms and conditions of this SOP. Use of these facilities, however, is at all times governed by rules and regulations as are adopted by SPSA from time to time and incorporated into this SOP. Member Localities and private haulers must register their respective vehicles with SPSA, including tare weights, prior to use. In addition, operating hours may be varied from time to time by SPSA to accommodate special circumstances. Notices will be posted at the main entrance of each Delivery Point advising users of regular operating hours and any special operating hours, as well as observed holidays. 2. Delivery Points and Receiving Times Location Monday – Friday Saturday Chesapeake Transfer Station 901 Hollowell Lane Chesapeake, VA 23320 7 am – 3 pm 7 am – 12 pm Franklin Transfer Station 30521 General Thomas Highway Franklin, VA 23851 8 am – 3 pm 8 am – 12 pm Isle of Wight Transfer Station 13191 Foursquare Road Smithfield, VA 23430 8 am – 3 pm 8 am – 12 pm Landstown Transfer Station 1825 Concert Drive Virginia Beach, VA 23453 5 am – 5 pm 7 am – 12 pm Norfolk Transfer Station 3136 Woodlake Avenue Norfolk, VA 23504 5 am – 5 pm 7 am – 12 pm Oceana Transfer Station 2025 Virginia Beach Boulevard Virginia Beach, VA 23462 6 am - 3 pm 7 am – 12 pm Suffolk Transfer Station Located at the Regional Landfill 7 am – 4 pm 7 am – 12 pm Regional Landfill (including Tire Shredder) 1 Bob Foeller Drive Suffolk, VA 23434 Closed Mondays Tuesday – Friday: 7 am – 4 pm Closed HHW Collection (Regional Landfill) 1 Bob Foeller Drive Suffolk, VA 23434 8 am – 4 pm 8 am – 12 pm 14 I -1371683.5 Location Days and Hours Boykins Transfer Station 18448 General Thomas Highway Boykins, VA 23827 Tuesday, Thursday, Saturday: 7 am – 7 pm Monday, Wednesday, Friday: Closed Ivor Transfer Station 36439 General Mahone Blvd. Ivor, VA 23866 Wednesday, Friday, Sunday: 7 am – 7 pm Monday, Tuesday, Thursday, Saturday: Closed WTE Facilities 2 Victory Blvd. Portsmouth, VA 23702 Monday 3 am – Saturday Noon Any changes to the receiving times for these Delivery Points, whether due to policy changes, weather or modifications to the Holiday Schedule described below, or for any other reason, absent emergency, are coordinated with the Member Localities as well as applicable vendors. 3. Holiday Schedule SPSA’s current holiday schedule is as follows: New Year’s Day January 1st Lee-Jackson Day* Friday preceding the 3rd Monday in January Martin Luther King, Jr. Day* Third Monday in January President’s Day * Third Monday in February Memorial Day* Last Monday in May Independence Day July 4th Labor Day* First Monday in September Columbus Day* Second Monday in October Veteran’s Day* November 11th Thanksgiving Day Fourth Thursday in November FRI following Thanksgiving Day* Fourth Friday in November Christmas Day December 25th If any of New Year’s Day, Independence Day, Veteran’s Day, Christmas Eve or Christmas Day Falls on a Sunday, when a facility is otherwise closed, then the applicable holiday is observed on the date designated for its observation as a holiday by the Federal Government. For those holidays marked above with an asterisk (*), all SPSA transfer stations will operate under the schedule for Saturday hours -- i.e. they will be open for one-half day (either 7 am - Noon or 8 am – Noon) under receiving hours listed above. 15 I -1371683.5 4. “Extra” Charges to Member Localities SPSA charges each Member Locality at an hourly rate to the extent the Member requests to extend a transfer station’s normal receiving time. The hourly rate is calculated each fiscal year and includes the full cost to SPSA for extending hours past its normal receiving time, including the time necessary to haul the waste to the proper disposal point. 5. Units of Measure Each Delivery Point is equipped with vehicular scales. All vehicles, except those of residential users, are weighed with the driver aboard upon arrival. All departing vehicles are then weighed a second time, unless the vehicle tare weights are known. Disposal System Fees (tipping fees), in turn, are charged based upon the difference between the arrival and departure weights. If the scales at the receiving location are inoperative, the fee is based on the average amount received per vehicle when dumping records for such vehicle for the twelve (12) full months immediately preceding are available or, when such records are not available, the fee is based on the average amount received per vehicle of like size and/or compaction ratio. The driver of each vehicle is given a statement after each load of Solid Waste is dumped, and each such statement reflects the weight of the waste dumped, the applicable date, time and Delivery Point, and the applicable Disposal System Fee. In addition, SPSA may designate grades or categories of Solid Waste that will be measured upon receipt by SPSA by number of units or by means other than by weight. 6. Right to Reject Waste SPSA accepts most non-hazardous Solid Waste within the Disposal System, subject to the other terms and conditions of this SOP, including, but not limited to, SPSA’s exclusion of Disaster Waste from the Disposal System (see SPSA’s Role in a Storm Event under Section 8.0 below). SPSA also retains the right to refuse to accept waste from users who have failed to pay any applicable Disposal System Fees. All reasonable attempts are made to reject unacceptable waste before it is received within the Disposal System. However, if grades or categories of waste are disposed of at a Delivery Point that is not designated for the receipt of such waste, it is the responsibility of the user to remove such material at its own expense. Any such material not promptly removed by the user may be removed by SPSA, and the costs for such removal are then charged against the user. 7. Traffic Guidelines Each of the Delivery Points is expected to handle a large number of vehicles. Traffic control at each location is at the sole discretion of SPSA. 8. Residential Waste Guidelines Residents of the Member Localities are not charged for disposal of their household waste. However, starting in January 2018, the residents’ applicable Member Localities will be charged Disposal System 16 I -1371683.5 Fees for residential disposal of household waste within the SPSA Disposal System; provided, the foregoing policy of charging the Member Localities for their residents’ disposal of household waste shall not apply at the Delivery Points in Boykins and Ivor, which serve residents of Southampton County. Residents may dispose of their household waste during operating hours at each authorized Delivery Point (with the exception of the Norfolk Transfer Station, which permits free disposal to Norfolk residents only on Saturdays between the hours of 7 a.m. and 4 p.m. and Sundays between the hours of Noon and 4 p.m.), but only if the following conditions are met. a. Proof of residency (for example, a driver’s license or a utility bill). b. All household waste, bagged or un-bagged, including furniture, mattresses and small appliances that have a freon-free certification sticker (if applicable) are acceptable. c. Yard Waste is acceptable; however, limbs, branches and brush must be less than six feet in length and not greater than 6 inches in diameter. d. Disaster Waste may not be delivered to, and will not be accepted by SPSA at, any Delivery Point within the Disposal System (see SPSA’s Role in a Storm Event under Section 8.0 below). e. Solid Waste that is authorized to be delivered by residents must be delivered in one of the following “private vehicles”: i. Automobiles, station wagons, passenger vans with under 15 seats, sport utility vehicles, low- sided pickup trucks (350 size or smaller) and similar vehicles that are unmarked and unmodified (by way of example, but not limitation, vehicles without business decals/markings or equipment racks, such as pipe or ladder racks or similar modifications). ii. Utility trailers, up to eight feet in length, with no visible tools and/or equipment, that are being towed by one of the above-mentioned private vehicles. These Residential Waste Disposal Guidelines are designed to ensure that residents of the SPSA’s Member Localities are entitled to the safe and efficient disposal of their residential Solid Waste. Residents must adhere to all SPSA guidelines, policies and procedures while utilizing the SPSA Disposal System, and failure to do so may result in loss of access to SPSA’s facilities. 9. Maintenance and Development of Delivery Points (Transfer Stations) Post-2018 a. Transfer Station Ownership/Control. SPSA will own or lease all Delivery Points included within the SPSA Disposal System as of January 24, 2018 and will be responsible for the operation and maintenance of these facilities in accordance with all applicable permits and related rules, regulations and other Applicable Law. If a Delivery Point is leased from a Member Locality (or other third party), then the duration and, to the extent reasonably practical, all other terms of all such leases will be identical unless otherwise specifically agreed by the Board of Directors of SPSA. In addition, any 17 I -1371683.5 such lease of a Delivery Point from a given Member Locality shall, unless otherwise agreed in writing by the parties, terminate contemporaneously with the withdrawal of the applicable Member Locality from SPSA. b. Transfer Station Projects – Development Costs. The following provisions address any project involving the construction, renovation, relocation or expansion of a Delivery Point (each, a “Transfer Station Project”). i. Existing Delivery Points. If a given Transfer Station Project involves the renovation, relocation or expansion of an existing Delivery Point for purposes of maintaining, preserving or improving continued operations of such existing Delivery Point (each, an “Existing Delivery Point”), then (x) such Transfer Station Project in respect of the Existing Delivery Point shall be subject to the approval of SPSA’s Board of Directors, and (y) if such Transfer Station Project is duly and validly authorized and approved by the Board, then SPSA shall be responsible for all development costs associated such Transfer Station Project, including but not limited to all soft costs, construction and equipment costs and start-up costs, associated with the corresponding Existing Delivery Point. Notwithstanding anything herein to the contrary, however, if debt will be incurred by SPSA in connection with any such Transfer Station Project involving an Existing Delivery Point, the debt must be approved by the Board of Directors of the Authority in accordance with all requirements under Applicable Law before the project can commence. ii. New Delivery Points. If a given Transfer Station Project involves the construction, renovation, relocation or expansion of a Delivery Point for any reasons other than maintaining or improving continued operations of an Existing Delivery Point (each, a “New Delivery Point”), then (x) the applicable Member Locality shall first propose the Transfer Station Project for such New Delivery Point to SPSA’s Board of Directors, and (y) if such New Delivery Point will be operated and maintained by SPSA, then the Transfer Station Project shall be subject to the approval of SPSA’s Board of Directors. In any event, whether or not any such Transfer Station Project for a New Delivery Point requires approval from SPSA’s Board of Directors, the applicable Member Locality shall be solely responsible for all development costs associated with each and every Transfer Station Project for a New Delivery Point, including but not limited to all soft costs, construction and equipment costs and start-up costs , and any such development costs incurred by SPSA in connection with a Transfer Station Project for a New Delivery Point will be paid to SPSA no less often than monthly by the applicable Member Locality in accordance with a separate “Delivery Point Development Agreement” to be entered into by SPSA and such Member Locality. Notwithstanding the foregoing, however, if the SPSA Board of Directors agrees that a given New Delivery Point is in the best long-term financial interest of SPSA, even 18 I -1371683.5 if not operationally necessary at that point, then upon approval of the Board of Directors, SPSA may enter into a cost-sharing agreement for development costs associated with the Transfer Station Project for such New Delivery Point, so long as (and to the extent that) the SPSA Board of Directors makes a determination that SPSA’s proposed share of the development costs will not exceed the net value of the New Delivery Point. c. Transfer Station Projects – Operational Costs. From and after the completion of each Transfer Station Project, SPSA shall be responsible for the annual operations and maintenance costs, including where applicable rental/lease and related costs, of (i) each Existing Delivery Point resulting from the Transfer Station Project; and (ii) each New Delivery Point resulting from the Transfer Station Project if (but only if) SPSA and the Member Locality have agreed that such New Delivery Point will be operated and maintained by SPSA. 10. Out-of-Area Waste. Notwithstanding anything in this SOP to the contrary, SPSA shall not under any circumstances facilitate the importation of Out-of-Area Waste for (a) disposal in the Regional Landfill and/or (b) handling/processing/disposal at or by any other Delivery Point included within the Disposal System. 5.0 DESIGNATED DISPOSAL MECHANISM; PLANNING HORIZON 1. Designated Disposal Mechanism. a. Selection Process for Designated Disposal Mechanism. From time to time, as and when appropriate under the circumstances, and no less often then every seven (7) years, the SPSA Board of Directors (or a subcommittee thereof) and Executive Staff will undertake a comprehensive review of the Designated Disposal Mechanism then being utilized and, further, will assess its viability for future periods of time. While it is ultimately the responsibility of the SPSA Board of Directors to determine the best and most efficient Designated Disposal Mechanism for the Authority and its Member Localities (considering both process and economic factors), in so doing the Board will necessarily seek and consider the input of the Member Localities. (The Board of Directors may also solicit input/guidance from independent professionals in the field as well.) In connection with such review and consideration of the Designated Disposal Mechanism, in consultation with the Member Localities, the Board and Executive Staff may conclude that the Designated Disposal Mechanism then being utilized by SPSA is the most efficient and effective method of waste- disposal or, on the other hand, may determine that it is appropriate and in the best interests of SPSA and the Member Localities to explore alternative waste- disposal options, including (but not limited to) the issuance of one or more Requests for Proposal in accordance with Applicable Law, disposal of Municipal Solid Waste in the Regional Landfill or some other waste-disposal method/mechanism. Based on and following each such periodic review and assessment, Executive Staff will make a final recommendation for the Designated Disposal Mechanism for the applicable future period(s), and 19 I -1371683.5 Executive Staff shall endeavor to make such recommendation so as to give the SPSA Board of Directors and the Member Localities as much time as is reasonably practicable under the circumstances to consider such recommendation and all relevant considerations. Following such recommendation and, where appropriate, solicitation of input from the Member Localities, SPSA will conduct a vote in accordance with Applicable Law seeking approval from its Board of Directors for the recommended Designated Disposal Mechanism, it being expressly acknowledged and agreed that the approval of any Designated Disposal Mechanism for the Authority is and shall be at the sole discretion of the Board. Notwithstanding the foregoing or anything else in this SOP to the contrary, however, (i) the Designated Disposal Mechanism may not include any landfill constructed, operated or otherwise existing in the Northwest River Watershed (defined as the geographical areas lying within the boundaries delineated as such and specified as the “Northwest River Watershed” on Appendix B attached to this SOP), and (ii) SPSA shall not dispose of any Municipal Solid Waste (or other Solid Waste) in any landfill constructed, operated or otherwise existing in the Northwest River Watershed. b. Current Designated Disposal Mechanism. In 2010, SPSA sold its refuse-derived fuel plant (RDF) and power plant (collectively, the “WTE Faculties”) to Wheelabrator Technologies, Inc. (“Wheelabrator”), then an affiliate of Waste Management, Inc. (All of Wheelabrator’s operations were sold to Energy Capital Partners, a private equity group, in 2014.) In connection with the sale, SPSA and Wheelabrator executed a Service Agreement for solid waste disposal services, pursuant to which (i) SPSA must provide Wheelabrator with all waste received at each of its transfer stations, (ii) Wheelabrator must accept and process SPSA’s solid waste at the WTE Facilities, and (iii) SPSA pays Wheelabrator an annual fee for such services, subject to various offsets and credits. More specifically, SPSA accepts municipal and commercial solid waste (excluding Hazardous Waste) at nine transfer stations. SPSA’s transfer station staff sorts the solid waste received into Processible Waste and Non-Processible Waste at five of its transfer stations. The Processible Waste is hauled by SPSA from the applicable transfer stations to the WTE Facilities. The Non-Processible Waste received at seven of the transfer stations is loaded into non-SPSA trailers by SPSA staff and hauled to a non- SPSA landfill by Wheelabrator. At Wheelabrator’s request and with SPSA’s approval, Processible Waste may be diverted directly from a SPSA transfer station and hauled by SPSA to the Regional Landfill, rather than the WTE Facilities, at Wheelabrator’s cost. The Service Agreement with Wheelabrator continues through January 24, 2018 and, as such, the Wheelabrator arrangement represents SPSA’s current Designated Disposal Mechanism. 20 I -1371683.5 2. Planning Horizon. SPSA prepares, through the use of an independent professional engineer, an annual airspace management report designed to assist in the management of the remaining airspace for the Regional Landfill. Based on the 2015 report and various assumptions, including annual Solid Waste disposal of approximately 268,345 tons per year, Cells 5 & 6 are currently projected to reach capacity in September 2031. In addition to Cells 5 & 6, the Regional Landfill includes a 56-acre lateral expansion known as Cell 7. Cell 7 was approved by the Virginia Department of Environmental Quality on June 8, 2011. The capacity of Cell 7 is approximately 10,800,000 cubic yards, or approximately 9 million tons of Solid Waste. A conceptual plan has also been developed for the potential expansion of Cells 8 – 13, which would provide an additional 264-plus acres of potential expansion areas at the Regional Landfill. SPSA owns the applicable land; however, the additional cells have yet to be permitted. This additional capacity could provide enough capacity for the region for 100 plus years, based on the estimated annual Solid Waste tonnage noted above. Please see an illustration of the “Conceptual Plan” below. SPSA will continue to monitor the capacity of the Regional Landfill based on, among other things, variations in tons disposed and other planned and unplanned events, and SPSA will in turn update/modify its management reports accordingly, again no less than annually. Regional Landfill – Conceptual Plan 21 I -1371683.5 6.0 BASIS OF ACCOUNTING AND FINANCIAL REPORTING 1. Basis of Accounting and Financial Reporting SPSA’s activities are accounted for in a manner similar to accounting methodologies utilized in the private sector, using the flow of economic resources measurement focus and the accrual basis of accounting. Assets, liabilities, net assets, revenues and expenses are accounted for through an enterprise fund, with revenues recorded when earned and expenses recorded when the corresponding liabilities are incurred. 22 I -1371683.5 Annual financial statements are prepared on the accrual basis of accounting. SPSA reports as a special purpose government entity engaged in business-type activities, as defined by the Governmental Accounting Standards Board (GASB). Business-type activities are those that are financed in whole or in part by fees charged to external parties for goods or services. 2. Annual Budget SPSA’s fiscal year is July 1 through June 30. The SPSA Board of Directors adopts an annual financial plan, or budget, reflecting projected revenues and expenses for the upcoming fiscal year and directs the Executive Director to implement the plan. The annual budget is adopted as “balanced” on a cash basis, meaning that current revenues will equal current expenses; however, SPSA may use fund balances, or surplus cash, to fund capital expenses and equipment replacement. SPSA may amend or supplement its budget from time to time during the fiscal year, and the Executive Director is authorized to make transfers within the budget line items. Operating budgets lapse at fiscal year-end, with the exception of unfinished capital projects and encumbrances for purchases not received by June 30, which roll-over to the new fiscal year. The annual budget also includes a five (5)-year projection of revenues, expenses and projected Disposal System Fees. In accordance with the requirements of SPSA’s existing debt covenants, (i) SPSA files a preliminary budget with its bond trustee on or before May 15 of each fiscal year, and (ii) SPSA files the final financial plan for the upcoming fiscal year, as adopted by SPSA’s Board of Directors, on or before June 30. All SPSA debt is expected to be repaid in full by January 24, 2018. 3. Annual Audit SPSA engages an independent certified public accountant to conduct an annual audit of its financial records and statements each year. 7.0 RATES, FEES AND CHARGES FOR SOLID WASTE MANAGEMENT∗ In accordance with the requirements of SPSA’s existing debt covenants, the rates for fees and charges for solid waste disposal (i.e., Disposal System Fees) are currently fixed so that gross revenues minus operating expenses, or net revenues, are greater than or equal to (i) 1.2 times the annual debt service of senior debt and (ii) 1.1 times the sum of the annual debt service of senior debt plus senior subordinated debt. As noted above, all SPSA debt is expected to be repaid in full by January 24, 2018, after which time SPSA will have more flexibility with regard to its Disposal System Fees, subject to requirements of Applicable Law. ∗NOTE: Beginning in 2018, SPSA’s Disposal System Fee shall include operating costs; landfill closure and post-closure costs; and landfill replacement costs. 23 I -1371683.5 The Water and Waste Authority Act provides requirements/criteria that SPSA must follow when establishing its applicable Disposal System Fees. Specifically, Section 15.2-5136 states that “rates, fees and charges shall be so fixed and revised as to provide funds, with other funds available for such purposes, sufficient at all times (i) to pay the cost of maintaining, repairing and operating the system or systems, or facilities incident thereto, for which such bonds were issued, including reserves for such purposes and for replacement and depreciation and necessary extensions, (ii) to pay the principal of and the interest on the revenue bonds as they become due and reserves therefor, and (iii) to provide a margin of safety for making such payments.” Accordingly, while SPSA may change (increase or decrease) its Disposal System Fees from time to time, (x) SPSA will at all times follow such statutory requirements in implementing any such changes in its Disposal System Fees and (y) any such changes may be implemented only after proper notice has been provided and, where required, public hearing on such changes have been held, all in accordance with Applicable law. Invoices for Disposal System services are typically provided on a monthly basis, within ten (10) days after the end of each billing period, and unless otherwise specified by contract are due on or before the last business day of the month immediately following the month covered by the invoice, except to the extent any such invoices are subject to a good faith dispute. Each invoice provided by SPSA reflects the total tonnage of Solid Waste received by SPSA from the applicable user during the given billing period, together with such other information as SPSA deems appropriate or relevant. Past due account balances are considered delinquent and are subject to a finance charge of 18% annually. In addition, potential problem accounts or accounts that are in a continuous delinquent payment status may be placed in a credit hold status and the applicable customer/user may be denied access to the SPSA Disposal System until the account returns to current status and/or an arrangement with SPSA has been made to satisfy the past due balance. Delinquent accounts may also be referred to a collection agency or otherwise pursued through litigation. 8.0 SPSA’S ROLE IN A STORM EVENT As described elsewhere in this SOP, SPSA does not accept Disaster Waste within the Disposal System. Instead, SPSA has historically served as the “procurement agent” for regional management of debris caused by hurricanes and other major storms/disasters (i.e., Disaster Waste). More specifically, SPSA acts as the representative of certain localities, including all SPSA Member Localities as well as the counties of Surry, Northampton, Accomack, Sussex and Greensville (the “Covered Localities”), in the procurement process. In that role, SPSA issues an RFP for storm debris removal, reduction, disposal and monitoring/management services. A team comprised of personnel from certain participating Covered Localities then evaluates companies who respond and selects several providers (the “Contractors”), and SPSA enters into “stand-by” agreements with each Contractor on behalf of the Covered Localities. Under the agreements, SPSA (i) receives a work request from a Covered Locality for debris removal, reduction and disposal and (ii) directs the request to the appropriate Contractor as a task order. After the initial task order, all service and payment arrangements are between the Covered Locality and the designated Contractor, without SPSA involvement. This arrangement is known as “cooperative procurement” under the Virginia Public Procurement Act. A typical cooperative scenario would be in the form of a “piggy-back” arrangement, where one public 24 I -1371683.5 body issues an RFP listing other public bodies who may participate. Then each of the public bodies, including the public body that issued the RFP, would have its own, separate contract for services with the terms as set forth in the RFP. Here, however, SPSA enters into the ensuing agreements with the Contractors on behalf of the Covered Localities, but is not receiving any services from or making any payments to the Contractors, and the Localities do not execute individual agreements with the Contractors. (In short, SPSA is simply “administering” a cooperative procurement agreement.) Subsequent discussions between Covered Localities and the selected Contractor(s) for the amount and type of service provided are the sole responsibility of each Covered Localities, as are any arrangements for billing and payment for services rendered. The Covered Locality are also responsible for clearing, removal, separation and disposal of the majority of storm generated debris and other Disaster Waste, with the assistance of contractors and the use of temporary municipal processing and burning facilities. The individual Covered Localities, and the region in general, benefit from this process: For instance, any disaster prompting Contractor action under the agreements would likely impact the region as a whole and not just one particular city or county; by acting on behalf of the region and its Covered Localities in the procurement process, SPSA is able to obtain more favorable pricing terms than any individual Covered Locality likely could on its own. SPSA is also familiar with and skilled in the procurement process for storm debris management generally, so all parties likewise benefit from the enhanced efficiencies associated with cooperative procurement. In addition to its role as “procurement agent” for regional management of Disaster Waste, SPSA’s objectives in the event of a major disaster would be to: (1) coordinate suspension and resumption of services, internally and with Member Localities, (2) maintain essential internal support capabilities, such as communication, equipment and vehicle fueling, and equipment maintenance and repair, (3) suspend acceptance of household waste until system capabilities and community needs can be evaluated, and (4) resume normal operations as soon as conditions permit. SPSA also reserves the right to temporarily suspend residential waste disposal prior to storm events if it is negatively impacting the ability to handle municipal and commercial waste. 9.0 POLICIES AND PROCEDURES TO BE MAINTAINED SPSA maintains, and shall maintain, the following documentation, policies and procedures in accordance with Applicable Law and regulations: 1. Strategic Operating Plan 2. Articles of Incorporation and Bylaws 3. Financial Policies 4. Procurement Policies and Procedures 5. Employee Policy Manual 6. Record Retention 7. Safety Policies and Procedures 8. Environmental Policies 9. Insurance Policies 10. Regional Landfill Operating Manual 25 I -1371683.5 11. Tire Shredder Operating Manual 12. Transfer Station Operating Manual 13. Emergency Operations Plan 14. Disaster Response Plan The above documentation, policies and procedures are maintained at SPSA’s headquarters, currently the Regional Office Building in Chesapeake, are incorporated into the SOP by this reference and are available for review and inspection by authorized representatives of all Member Localities. 10.0 REVISIONS TO STRATEGIC OPERATING PLAN Revisions to this Strategic Operating Plan may be made at the sole discretion of SPSA to the extent approved by the SPSA Board of Directors in accordance with the terms hereof. More specifically, this Strategic Operating Plan shall be reviewed by the Board of Directors on at least an annual basis in connection with the Board’s review and consideration of SPSA’s annual operating budget, and at such other times as the Board may deem necessary or appropriate. If deemed necessary or appropriate after any such review, this Strategic Operating Plan may be updated or otherwise modified by the SPSA Board of Directors, and any such updated/modified Strategic Operating Plan shall be in complete replacement of this any and all other prior Strategic Operating Plans. Notwithstanding anything to the contrary in the foregoing, no update, amendment or modification of this Strategic Operating Plan, or any provision hereof, shall be valid unless such update, amendment or modification has been authorized by a resolution approved by at least seventy-five percent (75%) of the Board of Directors of SPSA. [END] 1 I -1371683.5 APPENDIX A Definitions Applicable Law – Collectively, the Virginia Water and Waste Authorities Act, the Virginia Waste Management Act (as amended by Section 15.2-5102.1 of the Code of Virginia, sometimes referred to as the “Cosgrove Act”), the Virginia Solid Waste Management Regulations (currently Chapter 81 of the Virginia Administrative Code), the Virginia Hazardous Waste Management Regulations (currently Chapter 60 of the Virginia Administrative Code), the Resource Conservation and Recovery Act and any other federal, state or local law, rule, regulation, ordinance, permit, decree or other governmental requirement that applies to the services or obligations under this SOP, whether now or hereafter in effect, and each as may be amended from time to time. Construction and Demolition Debris – Any Solid Waste that is produced or generated during or in connection with the construction, remodeling, repair and/or destruction or demolition of residential or commercial buildings, municipal buildings, roadways and other municipal structures, and other structures, including, but not limited to, lumber, wire, sheetrock, brick, shingles, glass, asphalt and concrete. Delivery Point – Each facility and location owned or operated by the Authority, or by a third party that is subject to a contract with the Authority in respect of the Disposal System, that (a) possesses all permits required under Applicable Law to receive Solid Waste for disposal and (b) is designated by the Authority from time to time herein to accept Municipal Solid Waste from the Member Localities for further and final processing and disposal by or on behalf of the Authority (certain Delivery Points may sometimes be referred to as “transfer stations”). Designated Disposal Mechanism – The method (or methods) utilized by the Authority for final disposal of Municipal Solid Waste under this SOP, as designated by the Board of Directors of the Authority from time to time in accordance with the express terms hereof and set forth herein. The Designated Disposal Mechanism may include, among other methods, (a) disposal of Municipal Solid Waste in the Regional Landfill in accordance with Applicable Law, (b) disposal of Municipal Solid Waste through one or more facilities owned and/or operated by the Authority in accordance with Applicable Law and/or (c) disposal of Municipal Solid Waste pursuant to agreements between the Authority and one or more third parties. Disaster Waste – Any Solid Waste and debris that (a) is generated as a result of or in connection with any significant storm or other severe weather occurrence (such as, but not limited to, hurricanes and tornadoes), natural or man-made disaster, war, act of terrorism or other similar occurrence, together with Solid Waste and debris generated in connection with clean-up and/or reconstruction activities resulting from any such occurrences or events, and (b) is of a quantity or type materially different from the Solid Waste normally generated by or within the Member Locality. Disposal System – All facilities and/or locations owned or leased by the Authority, or with respect to which the Authority otherwise maintains a contractual/commercial relationship, for the collection, management, processing and/or disposal of Solid Waste, including, but not necessarily limited to, the Regional Landfill, all Delivery Points and the Designated Disposal Mechanism(s), together with all 2 I -1371683.5 equipment and vehicles owned or leased by the Authority and used in connection with the collection, management, processing and/or disposal of Solid Waste. Disposal System Fees – Rates, fees and other charges imposed by the Authority for the collection, management, processing and/or disposal of Solid Waste within the Disposal System, as determined by the Board of Directors of the Authority from time to time in accordance with the Virginia Water and Waste Authorities Act (certain Disposal System Fees may sometimes be referred to as “tipping fees”). Hazardous Waste – Any waste or other material that because of its quantity, concentration or physical, chemical or infectious characteristics may (a) cause or significantly contribute to an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness; or (b) pose a substantial present or potential hazard to human health, the Disposal System or the environment when treated, stored, transported, disposed of or otherwise managed. Hazardous Waste specifically includes, but is not necessarily limited to, any waste classified as “hazardous” under the Resource Conservation and Recovery Act, the Virginia Hazardous Waste Management Regulations or any other Applicable Law. Household Hazardous Waste – Surplus or excess household products that contain corrosive, toxic, ignitable or reactive ingredients, including, but not necessarily limited to, cleaning products, old paints and paint-related products, pesticides, pool chemicals, drain cleaners and degreasers and other car-care products. Municipal Solid Waste – All Solid Waste the collection of which is controlled by the Member Locality, including (a) Solid Waste that is generated anywhere within the SPSA Service Area and collected by the Member Locality, and (b) residential Solid Waste that is generated anywhere within the SPSA Service Area and collected by a third party for the benefit of (and under the direction and control of) the Member Locality. Municipal Solid Waste expressly excludes the following (collectively referred to herein as “Excluded Waste”): (i) Hazardous Waste and Household Hazardous Waste, (ii) Recyclable Waste, (iii) Yard Waste, (iv) Construction and Demolition Debris, (v) Disaster Waste, (vi) Solid Waste delivered by citizens of the Member Locality to publicly-accessible landfills or other facilities and disposed of at such facilities, (vii) any Solid Waste generated by school boards, authorities or other political entities of the Member Locality (except to the extent (but only to the extent) that any such Solid Waste is actually collected by the Member Locality itself) and (viii) Out-of-Area Waste. Non-Processible Waste (NPSW) - All Solid Waste, other than Hazardous Waste, that could impair the operation or capacity of the Applicable Disposal Mechanism(s), at SPSA’s sole discretion, or cause potential or actual injury to SPSA’s employees and/or contractors, but which is capable of being disposed of by sanitary landfill, including but without being limited to metal cable, gypsum board, bricks and blocks, dirt, liquid wastes including sludge from water and waste water treatment plants, tree stumps, logs or other material larger than sic (6) inches in diameter and/or sic (6) feet long. Out-of-Area Waste – Any Solid Waste that is created or generated outside of, or originates outside of, the SPSA Service Area. Processible Solid Waste (PSW) – Any Solid Waste other than Hazardous Waste or non-processible waste, including especially material having energy value but currently being discarded without recovery of such energy value. 3 I -1371683.5 Recyclable Waste – Any Solid Waste that, pursuant to Virginia’s Solid Waste Management Regulations (or other relevant Applicable Law) in effect from time to time, or pursuant to prevailing commercial practices in the waste management industry at the applicable time, (a) can be used or reused, modified for use or reuse, or prepared for beneficial use or reuse as an ingredient in an industrial process to make a product or as an effective substitute for a commercial product, or (b) is otherwise processible (or reprocessible) to recover a usable product or is regenerable to another usable form, in each case, however, expressly excluding “residual” Solid Waste generated in connection with any such modification, preparation and/or processing for use, reuse, recovery and/or regeneration of other Solid Waste to the extent that such “residuals” cannot be categorized as “Recyclable Waste” in accordance with the foregoing. Regional Landfill – The landfill located in the City of Suffolk, Virginia, developed, owned and operated by the Authority for the disposal of Solid Waste, or any additional or successor landfill developed, owned and operated by the Authority. Solid Waste – Any garbage, refuse, sludge, debris and other discarded material, including solid, liquid, semisolid or contained gaseous material, resulting from industrial, commercial, mining and agricultural operations, or residential/community activities, excluding (a) solid or dissolved material in domestic sewage, (b) solid or dissolved material in irrigation return flows or in industrial discharges that are sources subject to a permit from the State Water Control Board and (c) source, special nuclear, or by-product material as defined by the Federal Atomic Energy Act of 1954, as amended; provided, the waste that constitutes Solid Waste hereunder (and/or is excluded from the definition of Solid Waste hereunder) shall be subject to change from time to time to the extent necessary or appropriate under the Virginia Waste Management Act or other Applicable Law. SPSA Service Area – The geographic area covered by the political subdivision boundaries of the cities of Chesapeake, Franklin, Norfolk, Portsmouth, Suffolk and Virginia Beach, Virginia and the counties of Isle of Wight and Southampton, Virginia. Strategic Operating Plan/SOP – This plan adopted by the Board of Directors of the Authority, which sets forth certain operational, maintenance, administrative and other responsibilities of the Authority with respect to the Disposal System and the performance of related services by the Authority, as the same may from time to time be updated, amended or modified in accordance with the terms hereof. Yard Waste – Any Solid Waste defined as “yard waste” under the Virginia Waste Management Act (or other relevant Applicable Law) in effect from time to time, currently consisting of decomposable waste materials generated by yard and lawn care and including leaves, grass trimmings, brush, wood chips and shrub and tree trimmings, excluding roots, limbs or stumps that exceed the limitation(s) in length and/or diameter specified by a Member Locality from time to time. [End of Definitions] 1 I -1371683.5 APPENDIX B Northwest River Watershed ISSUE: Staff Report – Request for Proposal (RFP) to Identify Water Using Industries BACKGROUND: At its regular meeting on February 17, 2016, the Board directed staff to perform research and provide a report regarding whether or not an RFP should be issued soliciting identification of water-using industries for location in the Shirley T. Holland Industrial Park. Staff will provide information relative to the pros and cons of issuing an RFP to outsource additional assistance to identify water-using industries. RECOMMENDATION: Per the Board’s discussion and direction. ATTACHMENTS: None ISSUE: Motion – Route 10 Request for Proposals (RFP) for Preliminary Engineering Report BACKGROUND: The Route 10 waterline extension project has been identified as a CIP project to be constructed in FY2016-17. This extension will provide a critical system redundancy and, as the water system demand grows, the flows from the Route 10 connection point will also be needed to supplement the limited flow that can be provided through our current single connection point under the SBH Bridge on Route 17. Although funding for the approximately $3.5M project will not be available until July, staff proposes to develop a Request for Proposal (RFP) to provide a Preliminary Engineering Report (PER) to assess the scope of work, estimate concept-level project costs and identify permitting and physical project constraints. Based on previous similar work, staff anticipates the PER would cost approximately $40,000; however, the RFP process can begin now with no significant cost to the County. Issuing the RFP will allow staff to be prepared to authorize the PER work to commence closer to the point where funding becomes available. RECOMMENDATION: Authorize staff to develop and advertise a Request for Proposal for a Preliminary Engineering Report for the Route 10 waterline extension. ATTACHMENTS: Ten-year Capital Planning – Route 10 ISSUE: Motion – Authorize Survey Work for Lawnes Point Waterline Extension BACKGROUND: The Lawne’s Point waterline extension to Rushmere Shores has been identified as a CIP Project to be constructed in FY2016-17. The existing Rushmere Shores water pumping station is in severe disrepair and needs to be replaced or abandoned. A recent PER was prepared through grant funding which recommended the extension from the newer County owned Lawnes Point water plant rather than making a significant investment in rehabilitating the Rushmere Shores station. Although the funding for the approximately $750k project won’t be available until July, staff proposes to start the survey work now in anticipation of having the design effort completed in house over the next few months. This schedule will allow waterline extension work to commence when the funding becomes available. BUDGETARY IMPACT: The cost of the survey effort proposed to support this project’s design is $18,200 and funding is currently available in the Water Contingency line item. RECOMMENDATION: Adopt a motion to authorize the initial survey work to support the completion of the Lawnes Point waterline extension design. ATTACHMENTS: Proposal from Cardinal Survey and Design March 17, 2016 ISSUE: Motion – Set Meeting Dates for a Public Hearing and Work Sessions for the Proposed FY2016-17 Operating and Capital Budget and Related Ordinance and Resolutions BACKGROUND: In order to facilitate timely adoption of the proposed Fiscal Year 2016-17 Operating and Capital Budget, the Board will need to schedule a public hearing to receive comments from citizens and set budget work sessions. Staff will provide a revised budget calendar outlining the recommended dates/times for the public hearing and work sessions. BUDGETARY IMPACT: There is no budgetary impact. RECOMMENDATION: Adopt a motion to set meeting dates for a public hearing and work sessions for the Proposed FY2016-17 Operating and Capital Budget and related ordinance and resolutions. ATTACHMENT: None