SPSA board: wetlands permit issued, Magnolia purchase and Cell 7 bids expected; board approves multiple contracts and extends legal engagement letters

Southeastern Public Service Authority Executive Director Dennis (last name not stated) told the SPSA board on June 25 that the Virginia DEQ has issued the VWP individual permit for the wetlands work associated with the Magnolia property and that the U.S. Army Corps of Engineers' Section 404 record of decision is expected by the end of the month. Dennis said SPSA will execute the purchase agreement for the Magnolia property and close once the Corps' 404 decision is received.

"After we receive that 404 permit, we'll execute the purchase agreement we have with the owners of the Magnolia property, and we'll close on that deal," Dennis said during the executive director updates.

Dennis said the agency will put out a bid to log and grub the impact area immediately because of construction needs for Cell 7 and to establish borrow material for future landfill cells. He said SPSA held a pre‑bid meeting for Cell 7 on June 3 that drew six vendors and that staff extended the bid due date by two weeks to respond to follow‑up questions; the transcript states the new due date is in July but does not list an exact date.

On the regional planning front, Dennis described discussions with the Hampton Roads Planning District Commission (PDC) about the regional solid‑waste management plan. SPSA previously paid the PDC a flat $20,000 for plan management; the PDC recommended an increase to $50,000. Dennis said SPSA proposed instead to pay the PDC for the actual hours worked on the plan (estimated at about $50,000 for the coming cycle), and that SPSA is moving to take management of the regional solid‑waste plan back from the PDC as other authorities do. "Once that happens, the $50,000 will go away, and SPSA will be managing that ourselves," he said.

On waste volumes, Dennis told the board municipal waste deliveries were about 40,000–45,000 tons for the month, near record highs, and said commercial waste volumes were "through the roof." He said overall total waste for the year was at about 691,000 tons against a 700,000‑ton budgeted amount and that commercial volumes are already above the budgeted 189,000‑ton projection.

Dennis presented a set of contract renewals and new cooperative contracts and asked the board to authorize awards on a consent agenda. Contracts and annual values discussed in the packet included, among others: Colling Tire Company ($200,000, tire contract), Cookson Enterprises ($87,000, rubber edges for loaders), Caterpillar parts cooperative (estimated $300,000), McClungLogan Volvo parts cooperative ($85,000), MXI Environmental Services (household hazardous waste removal, $47,500), HEPACo (hazardous cleanup, $10,000), drug testing and toxicology services ($18,000), Safe Clean USA janitorial ($45,000), and a new split pest/rodent contract between Zupro (rodent) and Dodson Brothers (pest). Dennis said these items were covered in the current operating budget or structured as per‑unit cooperative purchases; he requested a single motion to award the contracts.

A motion to authorize contract awards as presented was moved and seconded and then approved by the board. The transcript does not show a roll‑call vote listing individual members for this motion; the chair asked for objections and recorded the motion as approved.

Board members also discussed engagement letters with outside counsel. Dennis presented an engagement letter from Williams Mullen that included hourly rates; Dennis read portions of the fee schedule and cited Bradley Nowak as the lead attorney with a stated hourly rate of $720. The board was told a separate engagement letter for Wilcox & Savage will be ready next month.

A board member asked about overtime spending, noting overtime expenditures were significantly higher than the budgeted overtime amount. Dennis responded that overtime is elevated for two reasons: higher hauling to third‑party landfills has changed operations and recent poor weather has delayed truck cycles into the landfill. He said the FY2026 budget increases the overtime line and that management's first goal next year is to reduce overtime through operational changes.

The executive director updates also included an acknowledgement of staff and consultants for work on the wetlands permitting process. Dennis said he would notify board members when the Corps' 404 record of decision and associated permit documents are in hand.

Votes at a glance

- Resolution of appreciation for Randy R. Keaton (ex officio representative, Isle of Wight County): motion to approve the resolution was moved and seconded and recorded as approved. (See separate meeting item covering retirements.)

- Approval of minutes for the May 28, 2025 board meeting: motion approved as presented; the transcript records one abstention (name not specified).

- Authorization of contract awards (consent agenda of renewal and cooperative contracts listed in the packet): motion approved; no individual abstentions or oppositions were recorded on the consent vote in the transcript.

- Motion to enter closed session for contract negotiations with Commonwealth Sortation and legal consultation under Virginia Code (closed‑session statutes as cited): motion carried by roll call; board members recorded "yes" in roll call as shown in transcript.

The board will return from the closed session to continue other business; the transcript closes while the meeting moved into that closed session.