RESOLUTION R2024- 035
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NAPA, STATE OF CALIFORNIA, ESTABLISHING
RECYCLABLE MATERIALS GATE FEES AT THE CITY' S
MATERIALS DIVERSION FACILITY, TO BECOME
EFFECTIVE MAY 1, 2024, AND JULY 1, 2024, FOR NAPA
COUNTY PER CITY AGREEMENT NO. 8782
WHEREAS, the City and Napa Recycling & Waste Services, LLC (" NRWS") are parties to a contract by which NRWS provides services to the City for Collection and Transportation of Municipal Solid Waste, Recyclable Materials, and Compostables and operation of the Napa Materials Diversion Facility (City Agreement No. 8687, hereinafter referred to as " Contract"); and the Contract was originally approved by the City Council on December 7, 2004, and was subsequently amended on April 18, 2023 ( R2023- 038); and
WHEREAS, under the terms of the Contract, the City, as owner of the Napa Materials Diversion Facility (" MDF"), is responsible for determining what materials are accepted at the MDF and for establishing gate fees to be charged to third party customers for certain recyclable materials delivered to the MDF; and WHEREAS, City staff has reviewed projected revenues and costs associated with the acceptance and processing various certain recyclable materials at the MDF; and WHEREAS, City staff has summarized the increased costs as well as decreased material sales revenues in the " 2024 MDF Recyclable Materials Gate Fee Analysis," which is documented in this Resolution ( including Exhibits " A" and " B," attached hereto and incorporated herein by reference) as well as the staff report to City Council accompanying this resolution and Attachment 2 to that staff report, all of which are available for public review electronically and in the office of the City Clerk; and WHEREAS, based on the 2024 MDF Recyclable Materials Gate Fee Analysis, City staff has determined that revenue from the sales of recyclable materials have decreased substantially while processing costs have also increased and that certain gate fees should be increased ( or converted from credits to charges) in accordance with this Resolution to reflect the lower market value and increased processing costs of recyclable materials; and
WHEREAS, the Utilities Director has determined that MDF recyclable materials gate fees are not subject to the California Environmental Quality Act pursuant to Public Resources Code Section 21080( b)( 8), based on the findings set forth in the MDF Recyclable Materials Gate Fee Analysis; and
WHEREAS, the City is authorized to establish " recyclable materials gate fees" to recover the cost of providing services to jurisdictional and third -party contractual R2024- 035 Page 1 of 6 April 16, 2024
customers who deliver certain recyclable materials to the MDF, pursuant to the City' s home rule authority as a charter city ( pursuant to California Constitution, Article XI, section 5, and City of Napa Charter Section 4) and the City' s police power ( pursuant to California Constitution, Article XI, section 7); and
WHEREAS, the City' s authority to establish " recyclable materials gate fees" is subject to the requirements of Proposition 26 ( California Constitution Article XIII C, section 1( e), and the City has documented in this Resolution compliance with those requirements, as well as compliance with California Government Code Sections 66016 — 66019; and WHEREAS, at least ten days prior to the date this Resolution is to be considered, a legal advertisement was published in the Napa Valley Register announcing a public hearing on April 6, 2024, where a staff report and cost analysis would be made available to the public documenting the amount of cost, or estimated cost, required to provide the service for which the fees herein adopted are levied and the revenue sources anticipated to provide the service; and
WHEREAS, the City Council previously established Recyclable Materials Gate Fees effective March 1, 2023, per Resolution R2023- 016; and WHEREAS, the Recyclable Materials Gate Fee for the County of Napa has been further analyzed based on composition studies specific to Recyclable Materials delivered to the City' s MDF and more recent materials sales revenue data; and WHEREAS, the City Council has considered all information related to this matter, as presented at the public meeting of the City Council identified herein, including any supporting reports by City Staff, and any information provided during public meeting.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Napa, as follows:
1. The City Council hereby finds that the facts set forth in the recitals to this Resolution are true and correct and establish the factual basis for the City Council' s adoption of this Resolution.
2. The City Council hereby finds that the recyclable materials gate fees established by this Resolution are charges imposed for a specific government service that: ( i) is provided directly to those who are charged the fees, and ( ii) is not provided to those not charged the fees. The City Council hereby finds that the amount of the self -haul and/ or contractual gate fees meet the criteria set forth in the subparagraphs to this section 2, below, based on the facts identified in this Resolution, particularly including the 2024 MDF Recyclable Materials Gate Fee Analysis identified in the recitals to this Resolution. a. The amount of the fees do not exceed the reasonable costs of providing the service. The fees will generate revenue to offset the estimated reasonable operational and contractual costs incurred by the City in accepting materials at the MDF for processing and recycling operations.
R2024- 035 Page 2 of 6 April 16, 2024
The amount of each fee is no more than necessary to cover the costs incurred by the City in conducting the activities to provide the services for which the fees are imposed.
b. The City has allocated the service costs to each individual fee payor in a manner that bears a reasonable relationship to each payor' s burdens on, and benefits received from, the City activities and services. c. Based on the findings set forth in this section 2, the fees established by this Resolution are not " taxes" as defined by California Constitution Article XI II C, section 1( e).
3. The City Council hereby approves and establishes the recyclable materials gate fees and credits for the MDF in the amounts set forth in the column labeled " Gate Fees Effective 5- 1- 2024" on the chart in Exhibit " A" to this resolution; and those fees and credits shall become effective May 1, 2024 or July 1, 2024 for Napa County.
4. The City Council hereby authorizes the City Manager and the Finance Director to implement the fees established by this Resolution, including: ( a) administratively organizing and publishing the fees in the City' s Master Fee Schedule; and ( b) implementing and enforcing the fees in accordance with the City Council Policy Resolution for the establishment, implementation, and enforcement of City Fees ( R2018- 046).
5. This Resolution shall take effect immediately upon its adoption.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Napa at a public meeting of said City Council held on the 16t" day of April, 2024, by the following vote:
AYES: Alessio, Luros, Painter, Narvaez, Sedgley
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
T ffany C nza
City Clerk
Approved as to form:
k, !; SabrinaS. Wolfson, Asst. CityAttomeyMichael W./Barrett City Attorney
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Exhibit A
MDF Recyclable Materials Gate Fees Effective 5/ 1/ 2023 and Effective 7/ 1/2024 for Napa County per City Agreement No. 8782 Master Fee Gate Fees
Material
Schedule Current Effective 5- 1- 2024
No. Gate Fees Effective 7- 1- 2024 for
Napa County)
Residential Recyclable Materials from Napa 7. 16. 15 55 per ton 25 per ton charge County ( per City Agreement No. 8782) credit
Commercial Recyclable Materials from Napa 7. 16. 16 5 per ton County ( per City Agreement No. 8782) credit 70 per ton charge Source - Separated Commercial Green Glass 7. 16. 17
20 per tonfrom Napa County ( per City Agreement No. credit 20 per ton credit 8782)
Source - Separated Commercial Clear Glass 7. 16. 18
20 per tonfrom Napa County ( per City Agreement No. credit 20 per ton credit 8782)
Residential Single - Stream (" Mixed") 7. 16. 13 30 per ton 30 per ton chargeRecyclable Materials credit Commercial Single - Stream (" Mixed") 7. 16. 14 10 per ton 75 per ton charge Recyclable Materials * charge
24 per 24 per vehicle ( load)
Minimum Charge per load * vehicle
load)
Minimum Charge per load is applicable only to materials listed in the above chart with an "*"
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Exhibit B
Executive Summary of Analysis and Basis for Proposed
MDF Recyclable Materials Gate Fees to become Effective 5/ 1/ 2024 and Effective 7/1/2024 for Napa County per City -County MOU for Use of the City' s Materials Diversion Facility ( City Agreement No. 8782)
Master Narrative Description of Analysis* and Basis
Material
Fee of specific Proposed MDF Recyclable Gate
Schedule Fees to become Effective 5/ 1/ 2024
No.
7. 16. 15 Page 2 of Analysis describes an estimated
average revenue of $ 191. 98/ ton of the category
of residential " single - stream" ( mixed) materials
of which 70% is retained as City revenue
Residential Recyclable
134. 39/ ton). The City revenue is reduced by a
Materials from Napa projected $ 101. 37/ ton in over - baseline County ( per City processing costs leaving a net City revenue of Agreement No. 8782)
33. 01/ ton. The $ 33. 01/ ton in estimated net
revenue is further reduced by $ 21. 89/ ton for
stream' s portion of MDF capital costs ( p. 24 of
Analysis). The proposed gate fee ( charge) is
the approximate midpoint of the 20% market
volatility buffer ( p. 3 of Analysis).
7. 16. 16 Page 2 of Analysis describes an estimated
average revenue of $ 101. 56/ ton of the category
of commercial " single - stream" ( mixed) materials
of which 70% is retained as City revenue
Commercial Recyclable
71. 09/ ton). The City revenue is reduced by a
Materials from Napa projected $ 101. 37/ ton in over - baseline County ( per City processing costs leaving a net City revenue of Agreement No. 8782)
negative $ 30. 28/ ton. The negative $ 30. 28/ ton in
estimated revenue is further reduced by
21. 89/ ton for stream' s portion of MDF capital
costs ( p. 24 of Analysis). The proposed gate fee
charge) is the approximate midpoint of the 20%
market volatility buffer ( p. 3 of Analysis).
Source - Separated
7. 16. 17 The credit recommended for this specific
Commercial Green material type is based on a stable value of glass Glass from Napa County for CY2023 vs. CY2023 and previous per City Agreement No. methodology specific to City Agreement No. 8782) 8782 with Napa County for source - separated
commercial glass delivered to City' s MDF.
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Source - Separated
7. 16. 18 The credit recommended for this specific
Commercial Clear Glass material type is based on a stable value of glass from Napa County ( per for CY2023 vs. CY2022 and previous City Agreement No. methodology specific to City Agreement No. 8782) 8782 with Napa County for source - separated
commercial glass delivered to City' s MDF.
7. 16. 13 Page 1 of Analysis describes an estimated
average revenue of $ 179. 63/ ton of the category
of residential " single - stream" ( mixed) materials
of which 70% is retained as City revenue
125. 74/ ton). The City revenue is reduced by a
Residential Single- projected $ 101. 37/ ton in over - baseline Stream (" Mixed") processing costs leaving a net City revenue of Recyclable Materials 24. 37/ ton. The $ 24. 37/ ton in estimated net revenue is further reduced by $ 21. 89/ ton for
stream' s portion of MDF capital costs ( p. 24 of
Analysis). The proposed gate fee ( charge) is
the approximate midpoint of the 24% market
volatility buffer ( p. 3 of Analysis).
7. 16. 14 Page 1 of Analysis describes an estimated
average revenue of $ 109. 20/ ton of the category
of commercial " single - stream" ( mixed) materials
of which 70% is retained as City revenue
76. 44/ ton). The City revenue is reduced by a
Commercial Single- projected $ 101. 37/ ton in over - baseline Stream (" Mixed") processing costs leaving a net City revenue of Recyclable Materials * negative $ 24. 94/ ton. The negative $ 24. 94/ ton in estimated revenue is further reduced by
21. 89/ton for stream' s portion of MDF capital
costs ( p. 24 of Analysis). The proposed gate fee
charge) is the approximate midpoint of the 24%
market volatility buffer ( p. 3 of Analysis).
Minimum Charge per
Minimum charge set based on separate analysis
load * performed for public MDF Gate Fees set by
Council resolution R2024- 005.
Note: " Analysis" refers to 2024 MDF Recyclable Materials Gate Fee Analysis which is Attachment 2 to staff report for this item on the Napa City Council agenda for April 16, 2024 meeting).
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