15.2-5121 - Operation of refuse collection systems; displacement of private companies.
§ 15.2-5121. Operation of refuse collection systems; displacement of privatecompanies.
A. No authority shall operate or contract for the operation of a refusecollection and disposal system for any political subdivision, or collectservice charges therefor, unless the authority, and subsequently thelocality's governing body find: (i) that privately owned and operated refusecollection and disposal services are not available on a voluntary basis bycontract or otherwise, (ii) that the use of such privately owned services hassubstantially endangered the public health or has resulted in substantialpublic nuisance, (iii) that the privately owned refuse collection anddisposal service is not able to perform the service in a reasonable andcost-efficient manner, or (iv) that operation by such authority or thecontract for such operation, in spite of any potential anti-competitiveeffect, is important in order to provide for the development and/or operationof a regional system of refuse collection and disposal for two or more units.
B. Notwithstanding the provisions of subsection A, an authority formed underthis chapter shall not operate or contract for the operation of a refusecollection and disposal system which displaces a private company engaged inthe provision of refuse collection and disposal unless it provides thecompany with five years' notice of its decision to operate such a system. Asan alternative to delaying displacement five years, the governing body orauthority may pay a displaced company an amount equal to the company'spreceding twelve months' gross receipts for the displaced service in thedisplacement area. Such five-year period shall lapse as to any privatecompany being displaced when such company ceases to provide service withinthe displacement area.
C. For purposes of this section, "displace" or "displacement" means anauthority's provision of a system which prohibits a private company fromproviding the same service and which it is providing at the time the decisionthat will result in the displacement is made. Displace or displacement doesnot mean: (i) competition between the public sector and private companies forindividual contracts; (ii) situations in which an authority, at the end of acontract with a private company, does not renew the contract and eitherawards the contract to another private company or, following a competitiveprocess conducted in accordance with the Virginia Public Procurement Act,decides for any reason to provide such service itself; (iii) situations inwhich action is taken against a private company because the company has actedin a manner threatening to the public health and safety or resulting in asubstantial public nuisance; (iv) situations in which action is taken againsta private company because the company has materially breached its contractwith the political subdivision; (v) entering into a contract with a privatecompany to provide refuse collection and disposal so long as such contract isnot entered into pursuant to an ordinance which displaces or authorizes thedisplacement of another private company providing refuse collection anddisposal; or (vi) situations in which a private company refuses to continueoperations under the terms and conditions of its existing agreement duringthe five-year notice period.
D. An authority shall not make the findings required by subsection A orproceed to seek to operate a refuse collection and disposal system for anypolitical subdivision that would displace a private company pursuant tosubsection B until it has provided (i) public notice; (ii) a public hearing;and (iii) no less than forty-five days prior to the public hearing, writtennotice mailed first class to all private companies providing a refusecollection and disposal system in the political subdivision that can beidentified through the political subdivision's records.
E. The requirements and restrictions of this section shall not apply in anypolitical subdivision wherein refuse collection and disposal services arebeing operated or contracted for by any sanitary district located therein, asof July 1, 1983.
F. Notwithstanding the provisions of this section, a political subdivisionneed not comply with the requirements of this section if:
1. The authority proposes to contract with the private sector for services orsystems involving discarded or waste materials removed from the nonhazardoussolid waste stream for recycling; or
2. The authority proposes to contract with the private sector for services orsystems involving collection and disposal of nonhazardous solid waste and (i)the collected waste will be disposed of in a state-permitted waste managementfacility; (ii) the authority has a contract for services which shall be paidfor through a supporting financial agreement approved by the participatinglocality's governing body; and (iii) such action will not displace a privatecompany engaged in refuse collection and disposal. For purposes of thissection, "recycling" means the process of separating a particularnonhazardous waste material from the waste stream and processing it so thatit may be used again as a new material.
(1983, c. 155, § 15.1-1250.01; 1992, c. 247; 1993, c. 497; 1994, c. 190;1995, c. 660; 1997, c. 587.)