PRESS ROOM

SPSA Proposed Reorganization and Restructuring Plans
Announced at Jan. 24 Board Meeting

(Chesapeake, VA; January 24, 2007) -- At the January 24, 2007 meeting of the Southeastern Public Service Authority (SPSA) Board of Directors, Executive Director John Hadfield presented his proposed restructuring and reorganization plan.
            The presentation reviewed proposed reductions in operational and personnel expenses that do not impact SPSA's core contractual services, and referred certain program and operational issues to the Board for consideration.
            Key elements of the proposed restructuring plan included:

1. Reducing certain operating budget expenditures
2. Outsourcing recycling programs
3. Selling the Waste-to-Energy system
4. Exploring managed competition (Under managed competition, a public-sector agency competes with private-sector firms to provide functions or services under a controlled or managed process. This process defines the steps to be taken by government employees in preparing their own approach to performing an activity.)

            "Over the years there have been new services requested by the member communities, shifts in costs from the member communities to SPSA, and the addition of services to enhance environmental stewardship. These policy and service adjustments have contributed to SPSA's operating budget increases," said Mr. Hadfield. “Today I asked the Board to consider key policy issues such as competitively bidding landfill operations, reviewing ownership of SPSA transfer stations, changing free citizen disposal, and assessing contract compliance issues to meet the Board’s request of reducing SPSA’s operating budget," Mr. Hadfield added.
             “There are no formal plans or approaches in place at this time for the proposed outsourcing activities. Details related to those endeavors will be developed in the coming weeks,” noted Mr. Hadfield.
            The key next action is the establishment of an Advisory Committee that would provide oversight and management of the proposed managed competition, competitive bidding and outsourcing processes. A workshop will be held at the SPSA Board’s February 2007 meeting to further review and define issues related to those and other reorganization matters. A power point presentation of Mr. Hadfield’s proposed restructuring plan is available on SPSA’s website at www.spsa.com/whatsnew.

For more information, please contact Felicia Blow at 757-420-4700.

SPSA has been providing efficient and environmentally sound waste disposal services to the region and its residents since 1985. SPSA’s solid waste management system includes waste-to-energy, yard waste composting, drop-off and curbside recycling as well as other recycling programs, household hazardous waste collection, landfilling, landfill gas-to-energy and education programs. This integrated waste management system enables SPSA to put 57% of the waste it receives to a beneficial use, thus allowing the region to reduce its dependence on landfills.