439 MINUTES BOARD OF SUPERVISORS COUNTY OF YORK Work Session April 8, 2025 4:00 p.m. Meeting Convened. A Regular Meeting of the York County Board of Supervisors was called to order at 6:01 p.m., Tuesday, April 8, 2025 in the East Room, York Hall, by Chairman Sheila S. Noll. Attendance. The following members of the Board of Supervisors were present: Douglas R. Holroyd, Sheila S. Noll, M. Wayne Drewry, G. Stephen Roane, Jr., and Thomas G. Shepperd, Jr. Also in attendance were Mark L. Bellamy, Jr., County Administrator; Brian Fuller, Deputy County Administrator; Richard Hill, County Attorney; and Heather L. Schott, Assistant to the County Administrator/Deputy Clerk. WORK SESSION VIRGINIA PENINSULA PUBLIC SERVICE AUTHORITY VPPSA) Robert Krieger, Director of Public Works, and Jennifer Wheeler, Executive Director of Virginia Peninsula Public Service Authority (VPPSA), presented information to the Board about VPPSA services provided to York County. Mr. Krieger noted that VPPSA is paid for out of the Waste Management Enterprise Fund, which is not general tax dollars. It is paid for by subscribers of trash and recycling services. Ms. Wheeler provided a brief overview of VPPSA services and the VPPSA Fiscal Year 2026 budget that was adopted in December. She explained that VPPSA was formed in 1989 as a regional governmental organization providing solid waste management services to ten cities and counties in southeast Virginia. The VPPSA Board is comprised of one representative from each member locality's governing body, and the Authority's major decisions are made through this Board's votes. As a waste authority, they are responsible for creating and managing the regional solid waste management plan required by the Virginia Department of Environmental Quality. She noted that by having a regional authority, they could provide cost savings to communities through economies of scale. Ms. Wheeler stated that furthermore, VPPSA provides emergency management services by holding contracts for debris monitoring, management, and removal in the case of a severe storm event or hurricane. Each member city and county chooses and pays only for the services they need for their citizens. Their current service options include: transfer stations/convenience centers, drop-off recycling, curbside recycling, household chemical collection and computer recycling, compost facility, and debris management and monitoring. She explained that VPPSA oversees the curbside recycling contract for York County, Poquoson, Williamsburg, and James City County. Material collected from curbside recycling is transported to a local recycling processor (MRF) who prepares the recyclables for market. Chairman Noll asked how long their current contract for recycling would last. Ms. Wheeler replied that they started a five-year extension on July 1 of last year, which may include multiple curbside recycling providers. Mr. Krieger clarified that although they may have different providers picking up from the curbs, there is only one MRF for processing recyclable materials in their area. Chairman Noll asked if there could be impacts to the bidding for contracts. Ms. Wheeler confirmed that yes, it can impact it. There are some other MRFS in Virginia, but the cost of transporting materials to those more distant locations would be higher. 440 April 8, 2025 Mr. Shepperd asked if there is a distinction between a transfer station and a MRF. Mr. Krieger explained that the transfer station in York County is run by Republic Services, where they collect materials for transport. The MRF is where they separate and process the materials to be recycled. Ms. Wheeler explained that VPPSA services the drop-off containers for recycling at the transfer station, and the curbside recycling is handled through the contract with TFC. Mr. Roane clarified that VPPSA contracted with TFC but administered the program. Mr. Shepperd asked if VPPSA handled the trash at the transfer station. Ms. Wheeler clarified that the transfer station is owned by York County. Mr. Shepperd asked if Republic Services is contracted through VPPSA or through the County. Mr. Krieger replied that Republic Services is contracted through the County, not VPPSA. He said that the Republic contract would be expiring in the next six months, and there had been discussions about changing the scope of the contract to be more regionally cooperative, with the ultimate goal of reducing costs. Mr. Shepperd said that he had assumed VPPSA handled their trash as well. Ms. Wheeler stated that it was an option; the VPPSA Board could work to establish new programs. Mr. Shepperd expressed concern that their variety of services was in need of consolidation and simplification. He asked who was responsible for the composting facility. Ms. Wheeler explained that VPPSA operates the facility; York County is one of the participating localities that brings compost there. Ms. Wheeler continued to present information on VPPSA serviçes and operations, including their composting facility and the Virginia DEQ requirements for operating the facility. Additionally, they provided household chemical collection and computer recycling to ensure specific types of waste were responsibly disposed of to prevent environmental pollution and health hazards. She noted that they tracked residents participating in these events to ensure billing is consistent for each member county. Mr. Roane asked ifi increases in costs for hazardous waste are due to collection of more materials or if operating costs had increased. Ms. Wheeler said that it was a bit of both. There were increased costs of disposal that came with the new contract this year and increased participation in the collection events. Ms. Wheeler continued to present information on the debris management and monitoring services provided by VPPSA. The Board discussed some of the major cleanups the County had undertaken after past storm events and how this informed waste management logistics for the future. Mr. Holroyd asked what would happen if the federal government dissolved the Federal Emergency Management Agency (FEMA). Brian Fuller, Deputy County Administrator, said that the responsibility would fall to the state or local agencies. The contracts would still be in place, but the federal government would not provide reimbursements. Mr. Krieger noted that their contracts were well-written and specific enough for them to accurately track the costs of the different components. Mr. Shepperd expressed concern about potential manual labor shortages affecting debris management. 441 April 8, 2025 Ms. Wheeler provided information on the VPPSA budget process and the FY26 adopted budgets for York County's current programs. The total FY26 budget for the York County VPPSA program is $2,797,508, with a breakdown as follows: Curbside Recycling ($1,718,763) Drop Off Recycling ($7,822) Administrative Services - Community Fee ($35,200) Household Chemical Collection = Operation ($21,167) Household Chemical Collection - Disposal ($102,511) Landfill Monitoring ($0) Computer Recycling ($3,730) Compost Facility Operation ($898,314) Tire Disposal ($10,000) Chairman Noll asked if there is a basic fee for each jurisdiction before adding on the costs of the serviçes. Ms. Wheeler confirmed that was correct. The fee for participating in VPPSA is $11,000, which goes straight into the administration budget. The compost facility budget is structured by dividing the costs by allocation of tonnages. She noted that York County comprises 63% of the total tonnage received by the compost facility. The Board and staff discussed the accuracy of the process for measuring tonnage at the compost facility. The Board and staff discussed the breakdown of çosts presented in the York County VPPSA FY26 budget. Mr. Shepperd expressed concern about how VPPSA justified some of their salaries for employees. Ms. Wheeler stated that they are currently doing a compensation study, but ultimately the salaries are voted on by the VPPSA Board. She added that the costs are not only for salary and benefits; there are insurances and other items worked into the provided number. Mr. Drewry asked if Ms. Wheeler could provide the detailed breakdown of the costs to the Board. Ms. Wheeler confirmed that she could provide that information. The Board and staff continued to discuss salaries, vacancies, and cost savings for VPPSA operations as they related to the FY26 budget. They further discussed other VPPSA expenses including administration, office, equipment, operation, and host fees and leases. Mr. Shepperd expressed concern about the costs of the compost facility. He suggested VPPSA give the compost products to local businesses at the lowest or no cost in order to promote economic activity in their region, considering everyone in their area was paying taxes to operate the facility. Mr. Holroyd clarified that the VPPSA Board is the deciding factor in changing operations like that; it would be a regional decision rather than a County-specific one. Ms. Wheeler noted that any reduction in material sales would result in an increase in expenses because the sales would not be offsetting those costs. She stated that Newport News has a composting facility that operates in that way, and it is possible that VPPSA could mimic that. However, the VPPSA Board had previously been unsupportive of this option because it would be benefiting corporate entities more than the residents who paid the rates. Mr. Roane stated that it would be most beneficial to residents for the compost to be free, considering residents provided materials to the facility for free. Ms. Wheeler stated that if there were interest in changes in structure to VPPSA budgets and operations, the communities could work together to find the best path forward and the VPPSA 442 April 8, 2025 Board would vote to change that. She noted that it was profitable to commercial entities to buy the materials from VPPSA because they had already been processed, rather than the commercial entities processing the compost themselves. FY2026 BUDGET DISCUSSION Mark Bellamy, County Administrator, facilitated a discussion about the remaining budget work the Board would be undertaking for the FY2026 budget. He noted that the first budget public hearing would be April 15, 2025, with two work sessions on April 17 and April 22, if needed. Then, the FY2026 budget would be finalized on April 23 and was expected to be adopted at the May 6, 2025 Board of Supervisors meeting. He stated that the Board had been working on this budget since December of 2024, and he was aware that the Supervisors were in agreement on some areas of the budget but still differed in positions on others. He emphasized that now is the time when the Board must come to consensus on these budgetary issues. Mr. Bellamy noted that the Board had just discussed the upcoming budget for VPPSA, and it was confirmed that any changes would not affect FY26; the earliest impact would be in FY27. Mr. Bellamy stated that the current budget for schools is a $1 million increase, which they still have the opportunity to change if the Board desires to do so. The Board and staff discussed the potential impacts of the state's budget decisions on their local schools budget, CIP debt funding for school capital projects, and dedicated tax increases to adequately fund their school expenses. Mr. Shepperd expressed concern about whether the current process for installing the geothermal system at Tabb High School is the most efficient. The Board and staff discussed the budgetaryimplcations oft the Tabb High School improvements. Chairman Noll emphasized that these major costs are essential to maintain and improve infrastructure; they could not allow their County infrastructure to deteriorate. Mr. Bellamy reiterated that the question he was asking was regarding the $1 million increase allocated towards the schools' operating budget. The tax rate was advertised at 2 cents higher than his recommendation, sO the Board could consider allocating 1 cent to fund the schools. The Board discussed potential allocations for the undedicated 2 cents on the tax rate, including County staff pay, CIP reserves, and schools. Mr. Bellamy added that the County will receive one-time funds at the midpoint ofthe FY26 fiscal year because real estate assessments are performed on a biannual calendar year basis rather than on a fiscal year basis. Theresa Owens, Director of Finance, cautioned the Board that the best practice is to use one- time funds to pay for one-time expenses, not to pay for ongoing expenses. The Board and staff continued to discuss potential allocations of FY26 tax revenues and an optimal tax rate for their identified expenses. Mr. Bellamy asked the Board if they are in agreement with his recommended employee compensation increase for FY26, which is 4% plus $500. Mr. Holroyd requested for staff to return to the Board mid-year with an analysis of whether another increase in staff compensation is necessary. Mr. Shepperd added that regarding transportation and roads, he had received a lot of complaints about some of their local roads. He stated that the state would put no funding towards a project that is not included in the transportation plan, which only included projects submitted and approved through a specific Transforming Transportation Advisory Committee (TTAC) process. He explained that VDOT performed extensive analysis on the roads to determine the issues and feasibility of fixing them. He emphasized that they must have projects included in the VDOT transportation plan in order for state funding to be dedicated towards improving the road. He noted that the County must be able to provide a certain local match in order to fund projects 443 April 8, 2025 such as Smart Scale, and if they did not have enough, the state would not fund the project even ift they were approved. Mr. Bellamy stated that unrelated to the budget, he believed that he had identified a potential County Assessor candidate with an appropriate technical background. He requested the Board to provide him direction on offering the position to the candidate. Mr. Shepperd asked if Mr. Bellamy could provide more information about the candidate, considering the Assessor was one of the three positions the Board was responsible for hiring. Chairman Noll confirmed there was consensus from the Board for Mr. Bellamy to move forward with offering the position, with the understanding he would provide further details to the Board. CONSENT CALENDAR There was none. NEW BUSINESS There was none. OPEN DISCUSSION There was none. ADJOURNMENT Meeting Adiourned. At 7:00 p.m. Chairman Noll declared the meeting adjourned sine die to 6:00 p.m., Tuesday, April 15, 2025 in the Board Room of York Hall. MA Bdlang Mark L. Bellamy, Jr. Sheila S. Noll, Chairman County Admgistrator York County Board of Supervisors