Virginia Beach City Council Special Formal Session on SIPSA Agreement - September 10, 2025
Virginia Beach City Council Special Formal Session on SIPSA Agreement - September 10, 2025
On September 10, 2025, the Virginia Beach City Council held a special formal session to discuss a proposed 25-year extension of the use and support agreement with the Southeastern Public Service Authority (SIPSA) and a partnership with Commonwealth Sortation (AMP Robotics) to modernize regional waste processing. The presentation was led by Tom Leahy, SIPSA Executive Director, who outlined plans to increase recycling rates, extend landfill capacity, and secure a long-term waste disposal solution for the region.
Discussion Items
- SIPSA Agreement and Regional Landfill Status: Tom Leahy explained that the current use and support agreements expire in 2027 and automatically renew for 10 years to 2037. SIPSA seeks a 25-year extension (to 2052) to support a proposed $200 million investment by Commonwealth Sortation in mixed waste processing facilities. The regional landfill in Suffolk, after a lengthy permitting process, has finite capacity expected to last until 2060 at current disposal rates. Without extension, waste would need to be hauled to farther landfills at an estimated cost of $125 per ton (vs. $67 currently).
- Recycling and Diversion Goals: Under the proposed system, all household waste would go into a single bin. Within three years, the system is contractually guaranteed to divert 50% of waste from the landfill, directly recycling 20% (metals, plastics) and converting another 30% (organics, fiber) to biochar via pyrolysis. Current blue-can recycling captures 10-11% of residential waste, but one-third is discarded, resulting in a net recycling rate of 6-7%. The new system would extend landfill capacity to approximately 2095.
- Conditions and Next Steps: The amendment would only take effect if: (1) at least 75% of SIPSA’s board (12 of 16) authorizes it; (2) at least 75% of member localities (6 of 8) execute it; (3) the board approves a final contract with Commonwealth Sortation; and (4) both parties sign. If not all conditions are met, the amendment is null and void. Virginia Beach contributes one-third of SIPSA’s waste and tipping fees.
- Financial Implications: Tipping fees may increase 15-20% under the new system, but for cities with blue-can programs (like Virginia Beach), the additional cost is expected to be offset by savings from ending those programs. A period of overlap may require temporary use of fund balance or general fund support. City Manager Patrick Duhaney noted that finances appear solid.
- Due Diligence: SIPSA originally evaluated six firms; Commonwealth Sortation (AMP Robotics) was selected after thorough review. They already operate a facility in Portsmouth handling about one-eighth of regional capacity, and have a similar facility in Cleveland.
- Council Questions and Comments: Council members expressed support for the proposal, noting the environmental benefits and the extension of landfill life. Councilman Michael asked about the effect on rates; Councilwoman Rouse asked about biochar and next steps. Councilman Henley requested clarification on automatic inclusion of non-consenting members. No objections were raised to moving forward.
Key Outcomes
- The council agreed to bring forward an ordinance to authorize executing the 25-year amendment for consideration at the October 7, 2025 briefing and meeting.
- The council recessed into closed session to discuss real property, public contracts, and personnel matters (not detailed in open session).
Meeting Transcript
We're going to have to get going here and honorable members of City Council and Accordance with Virginia Beach. City Code 2-21 by the authority vested in May. As mayor of the City of Virginia Beach, I hereby call for special formal session of the Virginia Beach City Council. Tuesday, September 9th, 2025. Conference room for building second floor, 2401 courthouse drive. They may read all that stuff. The purpose of the special uh session is to conduct public hearing and city council commons discussions in the attached public agenda. At conclusion of the public briefing, the city council discussions city council will convene into a closed session where the following matters will be considered. Number one, publicly health property in District 2, District 4, District 5, a public contract, uh MOCA RFP, and personnel matters. Uh council appointments, council boards, commissions, committees, authorities, agencies, task force, and appointees. Performance of council appointees, boards, commissions, or committees. At the conclusion of the closed session, the City Council will reconvene into open session for the purpose of certifying the closed session. The special formal session will be of broadcast on cable, TV, Virginia Beach.com, and Facebook. Yours truly, Bobby D. Okay. And uh I guess we're ready to go. Mr. Mayor members of council at this time will be joined by Tom Leahy, a familiar face. The executive director for SBSA to learn more about an opportunity to extend the agreement or services. Go ahead. Welcome back. Oh, long time now, see, I admit. Oh, pretty good. Pretty good. Thank you. Um join retirement. Happy Elo. Yeah, I hope I hope to do that in about a decade or so. I can highly recommend it. All right. Anyway, well, good afternoon, Mayor Dyer and uh Vice Mayor Wilson and all members of City Council. Thank you for the opportunity to speak to you today about SIPSA's plans and visions uh to conserve our finite and limited uh landfill space and also to significantly increase the amount of uh solid waste that we recycle and reuse in the meantime. I have with me today uh Mr. Henry Strickland. He's uh SIPSA's uh deputy executive director. Our executive director, Mr. Dennis Bagley, uh sends his regrets, but this issue is also on Portsmouth City Council agenda today. And since I'm chairman of the CIPSA board, um I came here and then he went to Portsmouth. So I'd say on a personal note, um, I'm also here today because as I was walking out the door on my last day of work, I told City Manager Duhaney that if he needed anything to just give me a call. I was being polite. He called my bluff. Well, you know, Tom in the Marine Corps, they're just saying never volunteer. That's right. So anyway, so anyway, moving on. The mission of the Southeastern Public Service Authority, or SIPSA, is to provide reliable quality, low-cost, and environmentally sound waste disposal service for the eight member communities. It was created 50 years ago by the member localities themselves under the Virginia Water and Wastewater Authorities Act. We're governed by a long list of state and federal uh laws and regulations, but we also govern ourselves through agreements between CIPSA and the localities. These agreements are known as use and support agreements, and they are a major dispute point of discussion of the presentation today. Um these use and support agreements are really the key critical documents that prescribe the duties and responsibilities of CIPSA and the localities and how we relate to each other. I guess in other words, there are rule book.
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