Statement from Dave Mandyke, Director Public Works & Utilities, City of Spokane - 4/27/2011

I would like to provide some clarifying information to this discussion.

The City is in the process of negotiating an extension to the operating contract for the Waste to Energy facility.  As you know, Wheelabrator operates the facility under contract with the City of Spokane as administered by the Spokane Regional Solid Waste System.  While all the details have not been finalized, we expect to negotiate a three-year extension that would not include significant capital improvements and upgrades to the plant.

At one time, we had considered an extension that would have included $18 million in capital investments.  There is a City Charter issue related to the sale of bonds for such a use, and we need to address that.  But far more importantly, now is not the time to pursue those improvements. 

We have taken this approach as the various government agencies who use the plant consider how they want to handle their solid waste beyond the 2014 timeframe, when many of their contracts with the System expire. 

The regional jurisdictions have concluded that they must consider all future options for solid waste disposal.  That makes sense.  They’re looking for the services they want at the lowest cost.  They are seeking a business solution.

As a result, the City of Spokane also must approach this issue from a business standpoint.  Without assurances for future flow or even customers, we will stick to our business model to ensure the future viability of the system for the region or even just the City of Spokane.

Meanwhile, the original bonds for the construction of the facility will be paid off in 2011.  And, flow agreements with various jurisdictions will begin to expire this year, too.  The Mayor was very clear in her statements at a recent Summit on this issue. She will not seek to bind any jurisdiction to using the Waste to Energy plant in the future.  Each jurisdiction must evaluate its needs and determine what makes most sense for its citizens.

We see our role in the future as a provider of a solid waste disposal service to customers who choose to use what we have available.

Dave Mandyke
Director Public Works & Utilities
City of Spokane
dmandyke@spokanecity.org