Napa City Council
April 15, 2025

1 City of Napa
Utilities Department
April 2025

SOLID WASTE & RECYCLING

COLLECTION SERVICE RATE STUDY
FOR 2025-2029

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2 Solid Waste and Recycling Collection Service
Rate Study for 2025-2029

TABLE OF CONTENTS

Chapter 1 – Executive Summary ……………………………………………… pp. 4-7

Chapter 2 – Status of Solid Waste and Materials Diversion Operations and Programs since Time of Last Rate Setting Process …... pp. 8-12

Section 2.1 Overview of Services Provided …………….……….…. p. 8

Section 2.2 Current Status of City AB 939 and Diversion Efforts .. pp. 8-9

Section 2.3 New Programs, Staffing, and Other Operational Changes Cost changes made from 2014-2024 .…… pp. 9-12

Chapter 3 – Primary Drivers for Rate Adjustments …………………………. pp. 13-20

Section 3.1 2018, 2022 & SB 1383 NRWS Contract Amendments pp. 13-14

Section 3.2 Declining Markets for Recyclable Materials ……...…. pp. 15-16

Section 3.3. MDF Capital Improvements Expenses and Debt Service Costs …………………………………………… pp. 16-18

Section 3.4 New Programs and Cost Changes Planned
or Proposed for 2025-2029 ………………….……...... pp. 18-20

Chapter 4 – Financial Position of SWR Fund ……………….……………... pp. 21-35

Section 4.1 Projected Revenues under Existing Rates ……......…. pp. 21-27

Section 4.2 Projected Expenditures ……...................................…. pp. 27-32

Section 4.3 Status of Reserves for Solid Waste and
Materials Diversion Fund ……………..………............ pp. 32-35

Chapter 5 – Revenue Requirements and Proposed Solid Waste Rate Adjustments …………………………………………………...… pp. 36-42

Section 5.1 Rate Methodology …………………………….……….. p. 36

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3 Section 5.2 Revenue Requirements ………………………………… pp. 36-38

Section 5.3 SWR Fund Position with Proposed
Rate Adjustment ………………………..…………..…… pp. 38-39

Section 5.4 Impact of Proposed Rates on Specific Lines
of Service ………………………………….………...….. pp. 39-41

Section 5.5 Adjustment of Commercial Municipal Solid
Waste (MSW) Cart Rates ……………..………..……... p. 41

Section 5.6 Addition of “Packaged Organics” to Full Scale Commercial Food Scrap Diversion Program ...……... p. 42

Section 5.7 Proposition 218 Notice and Next Steps ……….……... p. 42

APPENDIX A: RECYCLING PROGRAM ACHIEVEMENTS AND
GRANTS ………………………………………………… pp. 43-46

APPENDIX B: STAFF REPORT AND RESOLUTION R2018-043
ADOPTING 2018 CONTRACT AMENDMENT
WITH NRWS (APRIL 17, 2018 NAPA CITY
COUNCIL MEETING) ………………………………… pp. 47-64

APPENDIX C: NAPA RECYCLING AND WASTE SERVICES

COST OF SERVICE STUDY (FOR
2018 CONTRACT AMENDMENT TO
CITY-NRWS AGREEMENT) ………………………… pp. 65-108

APPENDIX D: PROJECTED SWR FUND

REVENUES, EXPENDITURES AND RESERVE
BALANCES FOR CITY FY2024/25-FY2029/30

WITH PROPOSED SOLID WASTE COLLECTION
RATE ADJUSTMENTS ……………………………… pp. 109-111

APPENDIX E: MAY 8, 2018 CALRECYCLE LETTER TO

CALIFORNIA JURISDICTIONS REGARDING
CHINA’S “NATIONAL SWORD” POLICY …………. pp. 112-116

APPENDIX F: SUMMARY OF RECYCLING PROGRAM
CHANGES AS OF AUGUST 17, 2018 FROM

NATIONAL WASTE & RECYCLING ASSOCIATION
(REPRINTED WITH PERMISSION) ……………..… pp. 117-128

APPENDIX G: EXECUTIVE SUMMARY OF 2016 SOLID
WASTE REVENUE BONDS (GREEN BONDS) ..… p. 129

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4 APPENDIX H: ABBREVIATED STUDY OBSERVATIONS ON
PACKAGED ORGANICS PROGRAM ……………… pp. 130-131

APPENDIX I: UPDATED 2019 STUDY OF NAPA RECYCLING

AND REFUSE COLLECTION VEHICLE WEIGHT
IMPACT ON CITY STREETS ……………………… pp. 132-160

APPENDIX J: ESTIMATE OF ANNUAL STREET MAINTENANCE

COST FROM CITY OF NAPA PUBLIC WORKS
DEPARTMENT ………………………………………. pp. 161-163

APPENDIX K: FULL SOLID WASTE AND RECYCLING

COLLECTION SERVICE RATES UNDER

PROPOSED RATE ADJUSTMENTS
FOR 2025-2029 ……………………………………… pp. 164-194

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5 CHAPTER 1: EXECUTIVE SUMMARY

City of Napa’s Solid Waste & Recycling Collection Service Rates (“Solid Waste Rates”) were last adjusted in January of 20 22 (with the approving Napa City Council action occurring on July 23, 2019).

Since that last rate adjustment, many signif icant changes have occurred and the proposed rate adjustments to the Solid Waste Rates will address those changes in the Solid Waste and Recycling Enterprise Fund (“SWR Fund” or “Fund”). The purpose of the “rate study” is to evaluate the current and projected overall financial position of the SWR Fund and, if necessary, provide recommended (or “proposed”) adjustments to the City’s Solid Waste Rates for 2025 through 2029.

As an enterprise fund, the SWR Fund is independent of the City’s general fund and is supported by non- tax revenue, primarily from solid waste rate revenue charged for the collection and processing (including disposal) of municipal solid waste (MSW), recyclable materials and compostables. Within the Fund, there are five major “lines of service” which include (1) residential, (2) co mmercial, (3) roll -off debris/recycling box, (4) multi-family and (5) service to the Napa Valley Unified School District (NVUSD).

Because solid waste collection rates are tied to property (with property owners within City limits generally required to subscribe to solid waste removal services), solid waste rates (like City water rates) are subject to the provision of California’s Proposition 218 (or “Prop 218”). Prop 218 has provisions for a notice process to property owners and/or solid waste/recycling service customers, a 45 -day public review period once the notice of potential increased rates is mailed and a public hearing process to protest the potential rates following the public review period. In general, the rates charged to a rate - paying customer should be based on the cost of service to provide those services.

Beyond solid waste rate revenue, the SWR Fund also has two other major “non-rate” sources of revenue – revenue from the sale of processed recyclable materials and revenue from “Gate Fees” charged to users of the City’s Materials Diversion Facility (“MDF” or sometimes known as “Napa Recycling and Composting Facility” ). The City of Napa currently contract s with a private company named Napa Recycling & Waste Services, LLC (or “NRWS”) to provide for the collection and processing of solid waste, recyclable and compostable materials as well as operation of the City-owned Materials Diversion Facility (“MDF”). The City currently stands at a 69% level of recycling and composting (commonly known as “diversion rate” referring to the diversion of materials away from landfill disposal). Both the State of California and the City of Napa itself have set goals of meeting or exceeding a diversion rate of 75% or better. Relevant legislation and City programs toward that goal are discussed in this rate study (primarily chapter 2 and Appendix A to this rate study).

The major projected expenditures for the SWR Fund include compensation to NRWS for contracted services, landfill disposal of MSW, mitigation of impacts of heavy refuse and recycling collection vehicles on City streets, capital improvements and cost associated with materials delivered to and processed at the City’s MDF and salaries and benefits of City staff serving the SWR Fund. Projected revenues and expenses for the Fund are discussed in detail in Chapters 3 and 4 (as well as Appendices B through J to this rate study).

While there are many changes to such a large Fund, the most si gnificant three changes/impacts (“primary drivers”) since the time of the last City of Napa solid waste rate setting are as follows:

1. NRWS Contract and Impact of SB 1383 Compliance: The 2022 Contract Amendment with NRWS was approved by the Napa City Council in October 2022 (see Appendix E for full staff

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6 report to Council). Among other items, the 2022 Contract Amendment addressed operating and maintenance costs of the Covered Aerated Static Pile (CASP) and improved stormwater management system at the City’s MDF. Both major facility improvements were necessary to be compliant with solid waste, stormwater and air permits applicable to the MDF, particularly in order to receive, process and compost food scraps and soiled paper in addition to more traditional greenwaste. The 2022 Contract Amendment also increased compensation to NRWS for economic growth and defined parameters to measure that growth through an every-other- year “reconciliation review” process. Finally, the 2022 Contract Amendment fixed the annual contractual inflators for labor at 3.5% per year and non-labor capital and operating payment at

2.5%. In order to avoid large fluctuations for both parties for non-labor costs, the Amendment also included a risk sharing procedure whereby the City and NRWS share non-labor costs increases 50%/50% when the index, the Consumer Price Index-All Urban Consumers – All Items less food and energy, San Francisco-Oakland-San Jose-CA (Series ID CUURA422SAOL1E), exceeds 5% in a given year (the “safety-valve”). This term applies to the current City-NRWS agreement which ends in Contract Year (CY) 2031. The “safety valve” provision for non-labor costs was exercised in contract year (and calendar year) 2023 as the inflation rate was greater than 5% (6.0% that particular year). The capital and operating impacts of the 2022 Contract Amendment “reset” the baseline capital and operating by approximately $900,000 per year (escalated at the 3.5% labor and 2.5% non-labor indices since CY2022). The “reconciliation review” growth provision payment to NRWS is currently $205,516/year for residential growth, $698,404/year for commercial growth and the most recent annual roll-off debris box service growth was a payment of $68,466 to NRWS for CY2024 actuals.

Senate Bill (SB) 1383, California’s Short-Lived Climate Pollutant Reduction Strategy (Mandatory Organics Recovery), was signed into law in 2016 and the state-issued regulations to implement the statute became effective January 1, 2022 (SB 1383). SB 1383, focused on organics, is imposed on jurisdictions and solid waste generators (i.e., residential, commercial and institutional generators and collectors of solid waste/recyclable/compostable materials) that requires participation in recycling and organics recovery programs, including edible food recovery. The City submitted a Notification of Intention to Comply with SB 1383 to the state (CalRecycle) in February of 2022 and subsequent programmatic and contractual adjustments and additions were made to adhere to SB 1383 and the implementation plan approved by CalRecycle.

The SB 1383 Contract Amendment with NRWS was approved by the City Council in April 2023 (see Appendix F for full staff report to Council). This contract amendment continued the City’s effort to achieve (or exceed) a 75% level of diversion from landfill disposal pursuant to both adopted City policy and state goals. Key cost drivers included:

(1) addition of one commercial compost collection vehicle and driver; (2) new and/or upgraded collection equipment for expanded collection of compostable organic materials;
(3) addition of two NRWS compost equipment operators, two NRWS recycling outreach specialists and 1 ½ NRWS customer service representatives (half of one NRWS customer service representative was paid by south Napa County unincorporated rate payers); (4) new and/or upgraded sorting and processing equipment for recyclables at the City-owned MDF and

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7 (5) $2.6 million of new organics processing equipment at the MDF ($1.5 million of which was paid through a competitive grant secured from CalRecycle by the City).

The total annual impact was projected at approximately $2.8 million per year. At current SWR collection service rates, every $310,000 in additional costs is approximately 1% of collection service rate revenue. Thus the
annual increase in costs for SB 1383 compliance has “reset” the base NRWS contract by approximately 9% (all other factors being unchanged). The impact of the 2022 and SB 1383 Contract Amendments are described in more detail in section 3.1 and Appendices B and C of this rate study.

2. Dramatically Increased Fuel and Electricity Costs: A rapid and significant increase in the cost of fuel for NRWS collection vehicles and electricity for operation of the MDF has been experienced since the time of previous rate setting and is expected to continue to increase in the next five years. Full reimbursement of actual NRWS fuel and MDF electricity costs (once documented and verified) is built into the City-NRWS Agreement. In CY2019 (time of previous multi-year SWR rate setting), the combined cost of fuel and electricity was $1.22 million. By CY2024, the combined fuel and electricity cost had risen to $2.46 million, a 101.6% increase.

Projections for fuel cost are a 5.35% increase per year for the next five years and an 11% per year increase for electricity for the next five years. If these projected increases materialize as projected, the cost of fuel and electricity will be $3.53 million in CY2029 (a 43.5% increase compared to CY2024 actual fuel and electricity costs) creating an additional $1.07 million obligation for the SWR Fund. As noted above, at current collection service rates, every $310,000 in additional costs is approximately 1% of collection service rate revenue. Thus a $1.07 million increase constitutes a 3.45% increase by itself over current collection service rates. The impact of dramatically increased fuel and electricity costs is described in more detail in section 3.3 and Appendices E and F of this rate study

3. Major Capital and System Improvements: In September 2016, the City issued $12.5 million in solid waste revenue bonds (“SWRB”) for several major capital and system improvements at the MDF. Approximately $8 million of the SWRB proceeds have been invested in a CASP system to process compostable organic materials at the MDF. The CASP system is necessary to process a wide range of compostable materials including food scraps, grape pomace, soiled paper and manure (along with traditional yard trimmings) to be in compliance with permit conditions imposed on the MDF. Three major permits govern the MDF operation: solid waste facility, air district emissions, and stormwater management. Beyond the CASP system, approximately $2 million of the SWRB proceeds was dedicated towards a greatly improved stormwater management and treatment system at the MDF to meet the General Compost Order from the San Francisco Bay Area Regional Water Quality Control Board. The remainder of the SWRB proceeds funded necessary roof extensions, additional concrete pad, and loading dock improvements for storage and processing of recyclable materials at the MDF. The annual debt service for the SWRB is slightly under $900,000 per year.

Unfortunately, several major capital improvement projects (CIPs) have either been deferred or are now required because of combination of SB 1383 processing and increasingly stringent regulations and necessary permits (air, stormwater and solid waste facility permits). In consultation with NRWS as the contracted facility operator, the proposed rates support $18.7 million in MDF CIPs over the next five years. In FYs 2025/26 and FY2026/27, the proposed rates would fund the following CIPs at the MDF: (1) $2.8 million for installation of a 12 KV

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8 electrical system (as required by PG&E and deferred from 2020 because of the COVID-19 pandemic); (2) $750,000 for a second phase for treatment and storage of MDF industrial stormwater; (3) $500,000 for raising the height of the “compost contact” retention pond since no discharge is allowed for compost contact water, and (4) $150,000 for a permanent equipment storage bay at the City’s corporation yard. In FYs 2027/28 through FY2029/30, the major MDF CIPs that need to be funded are: (1) $13 million for next phase of CASP composting system (largely in response to air permit requirements to maximize on-site composting and avoid expense off-hauling of excess organic material to other composting facilities); (2) $500,000 for MDF concrete pad partial replacement (first year of a 3-year $500,000/year plan starting in FY2029/30 and continuing through FY2031/32); (3) $400,000 for replacement/rehabilitation of the 20 year-old MDF scalehouse in 2026 which has been deferred previously; and (4) $300,000 for partial replacement of perimeter MDF fencing (which has already been deferred several times). The original perimeter fencing will be 35 years old by CY2029 and cannot withstand additional deferral.

The City considered bond-funding for some of the above MDF CIPs, but the bond interest rates at nearly 6% interest are not favorable compared to the SWRB rate of 3.14%. The MDF CIP plan is described in more detail in section 3.2 and Appendices E and F of this rate study.

Beyond the three major changes described above, this r ate study examines the Fund’s projected revenue with existing rates against projected expenses for 2025-2029. When the City issued the SWRB in 2016, the bond indenture placed a minimum 1.25 debt coverage ratio for the F und which the City would not meet without some level of increases in solid waste rates. Please see chart below that presents the projected net operating position of SWR Fund with no rate adjustments for City FY2025/26 through FY2029/30.

Projected 5-year Operating Position of SWR Fund with No Rate Adjustments

In addition to the minimum debt service coverage ratio required by the 2016 SWRB, the impact of continuing with existing solid waste rates on the Fund’s reserves was also analyzed. In summary, the

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9 difference between continuing with existing solid waste rates and the proposed rate adjustments was dramatic. With no rate adjustments, the SWR Fund is projected to go from total reserves of $8,674,931 at the end of City FY20 23/24 with reserves completely exhausted by the end of City FY20 26/27 and projected to be negative $ 7,988,482 by the end of City FY202 7/28 (and this, in turn, would require significant financial support from the City’s general fund which is generally not permitted for an Enterprise fund such as the SWR Fund). Please refer to Table 2 in section 5.2.1 of this rate study for more complete data.

In contrast to the dire scenario described above under existing solid waste rates, adoption of the proposed rate adjustments provides a prudent replenishment of total SWR Fund reserves.

Projected 5-year Impacts of Proposed Solid Waste and Recycling Rates

The refunding of reserves under the proposed rate adjustments satisfies the 20% operating reserve target specified in the SWR Fund fiscal policy ($10,522,194 by the end of FY2028/29) and a rate stabilization fund reserve balance of $3,759,154 by the end of FY208/29 . A $3.76 million rate stabilization reserve balance would cover a single year 36% decline in materials sales revenue , which is always a possibility with volatile global markets for recyclables. Also included in these total projected reserves is a build -up of the Capital Improvement Project (CIP) reserves to cover the $18.7M in MDF CIPs over the 5 years and leave a projected CIP reserve balance of $1,837,952 by the end of FY2029/30. This will almost certainly be needed as the MDF continues to age (the facility will be 3 5 years old by the end of 2029). Failure to build adequate capital reserves in the Fund would necessitate some combination of future borrowing, depletion of existing reserves or higher rate increases for future City rate payers.

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10 CHAPTER 2: STATUS OF SOLID WASTE AND

MATERIALS DIVERSION OPERATION AND
PROGRAMS FROM 2014 to 2024

Section 2.1 OVERVIEW OF SERVICES PROVIDED

The Solid Waste and Materials Diversion Enterprise Fund (“SWR Fund” or the “Fund” in this report) pays for solid waste and recycling collection services provided primarily by Napa Recycling and Waste Services, LLC (“NRWS”) in the City of Napa. Services and program provided by a combination of NRWS and City staff include operation of the City of Napa’s Materials Diversion Facility ( “MDF”) where the recyclables are sorted and marketed, operation of the c ompost facility at the Napa MDF and provision of all of the City’s recycling programs including planning and implementing recycling programs at businesses in Napa, the commercial food scrap composting program, the Electronic Waste drop off day, the Recycle More Program, carpet recycling and other programs. The main sources of revenue to the Fund are (1) solid waste and recycling collection service revenues (“solid waste rates”) from residents and businesses, (2) revenue from the sale of recyclable materials, compost, and gravel from the MDF and (3) gate fees collected at the MDF from customers delivering yard trimmings , source separated concrete, wood, and other recyclable materials. Revenues also come from larger users for whom the Napa MDF processes c urbside recyclable materials, yard trimmings and food scraps including the County of Napa and private companies such as Sonoma Garbage Service. Only the first source of revenue to the SWR Fund listed above (solid waste rate revenue) includes property-related fees subject to California’s Proposition 218. However, all three major sources of revenue are utilized to cover overall expenditures in the Fund.

Section 2.2 CURRENT STATUS OF CITY AB 939 & SB 1383 DIVERSION EFFORTS

Despite very difficult global markets for recyclables, Napa has continued to achieve and maintain a very high level of recycling and composting. Measured by the older (and more conservative) “diversion - based” calculation method (diverted tons over total generation), it is estimated that the City of Napa achieved a 65% level of landfill diversion in calendar year (“CY”) 2024. This represents a 2% overall improvement from CY20 20 at 63% landfill diversion rate and steady progress toward the City goal of 75% diversion (as set by the “Disposal Reduction Policy” passed by the Napa City Council in July of 2012).

Effective January 1, 2009, state law requires use of the per capita disposal and goal measurement system to determine compliance with AB 939. The per capita disposal and goal measurement system measures tons disposed by the City and it also evaluates diversion program implementation efforts and results. Using this measurement system, the City of Napa’s disposal target rate is 7.3 lbs. of solid waste per person per day. The City of Napa’s 2016 calculated disposal rate as reported in th e annual report was 3 .8 lbs. per person per day. City staff calculates that the equivalent diversion rate would be approximately 74% for CY2016 (Please note that CY2017 and CY2018 data was not used as wildfire debris disposal skewed the state’s landfill disposal reports and the City submitted a disposal modification request using historical averages that was accepted by the State of California). Using the per capita measurement system, jurisdictions are discouraged from comparing their own rates with those of neighboring jurisdictions due to the specificity of the per capita disposal targets. Details on recycling

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11 programs achievements and recycling grants as of CY2018 can be found in Appendix A to this rate study.

Section 2.3 NEW PROGRAMS, STAFFING AND OTHER OPERATIONAL CHANGES MADE FROM 2014-2024

2.3.1 Upgraded Position – Waste Prevention Specialist & Second City Waste Prevention Specialist Added:

The City created the new position of Waste Prevention Representative in FY 2013/14. The position was later upgraded to a slightly higher “Waste Prevention Specialist” classification in FY2016/17. The Waste Prevention Specialist assist businesses, residents, schools and City facilities to increase diversion of recyclable waste and organics s uch as food scraps. The Waste Prevention Specialist has been very involved in the roll out of the full -scale Commercial Food Scrap Diversion Program to restaurants and other food scrap generators in the City. This was previously required by AB 1826, which has increasing requirement for compostable organics generating businesses, schools and multi-family complexes with virtually all such generators covered by January 1, 2020. With the passage and impact of SB 1383, all generators of compostable organics were required to subscribe to organics collection service as of January 2022. A second City Waste Prevention Specialist was added as of December 2023 and has also be en working with multi -family complexes and commercial businesses to increase diversion of recyclable materials and reduce contamination in the recyclables being collected. Salary and bene fit costs for position are contained in row 48 of Appendix D to this rate study.

2.3.2 New & Upgraded Scalehouse Supervisor Position:

The City created the new position of “Senior Scalehouse Attendant” in FY2017/18. The MDF is operated 361 days per year (closed only on New Year’s Day, Easter Sunday, Thanksgiving Day and Christmas Day). With the creation of new Senior Scalehouse Attendant, a team of three full time Scalehouse Attendants operate the MDF’s scales for 95% of the time with some limited back -up coverage from NRWS personnel. The Senior Scalehouse Attendant position also allowed the City to take on primary responsibility for Gatehouse Fee accounting and customer support (with billi ng duties supported via NRWS). Following a classification study, the City employee filling the Senior Scalehouse Attendant position was upgraded to a Scalehouse Supervisor position in FY2023/24. Salary and benefit costs for position are contained in row 48 of Appendix D to this rate study.

2.3.3 Expanded Recycle More Program:

In April 2013 the City commenced the Recycle More Program to collect electronic waste, metal appliances, oversized metal items, and used cooking oil from residences by appointment. In November 2013 the program was expanded to include collection of clothing, other textiles (such as linens, bedding, and towels), shoes, belts, purses, handbags, backpacks, hard cover books, compact discs (“CD’s”), digital versatile discs (“DVD’s”), tapes, toys and other similar re -useable items. In January 2016, the program was again expanded to collect and recycle household batteries (when combined with at least one other Recycle More item). In July of 2023, the Recycle More program was expanded to also include collection of household fluorescent bulbs and tubes. For calendar year 2024, the program collected 393 tons of electronic waste, metals, batteries, textiles and re-use items and 304 gallons of used cooking oil.

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12 This represented a 330% increase in collected tonnage from 2013 totals (119 tons). Costs for this program are contained in row 34 of Appendix D to this rate study.

2.3.4 Mandatory Commercial Recycling and Introduction of Full Scale Commercial Food Scrap Diversion Program:

In 2011, a new change to AB 939 was signed into law (AB 341) that established a statewide goal of diverting 75% of the solid waste stream from landfill by 2020. The law required CalRecycle to prepare a statewide plan for meeting the 75% diversion goal. The draft plan relied heavily on diverting food scraps from landfill throughout the state. The City authorized NRWS to begin a pilot commercial food scrap diversion program in August 2011.

AB 341 also required all businesses and multi -family complexes of 5 units or more, generating over 4 cubic yards of solid waste per week, to participate in a recycling program. This requ irement became effective July 1, 2012. Due to Napa’s comprehensive commercial and multi -family recycling program already in place, staff identified only 9 generators that did not have a recycling program when AB 341 became effective. Recycling programs were offered to these generators. In addit ion, the City was already providing (via NRWS) the data collection on the results of the commercial recycling program plus the education program required by the new law.

By CY2016, the City and NRWS had narrowed down to only 3 non-compliant generators and by CY2018 there was only one non -compliant generator; enforcement action was taken and now the City have all qualifying commercial generators (2 cubic yards of more of solid waste service per week) participating in recycling.

In September 2014, another change to AB 939 was signed into law (AB 1826) requiring all businesses generating 8 cubic yards or more of food waste (referred to as “organic waste” in the statute) per week, to participate in a food scrap diversion program beginning April 1, 2016. Businesses generating 4 cubic yards of organic waste per week had to begin participating in a food scrap diversion program by January 1, 2017. Businesses producing 4 or more cubic yards of commercial solid waste per week were required to implement an organics diversion program by January 1, 2019. Businesses generating 2 or more cubic yards of commercial solid waste may be subject to the same requirement, at the discretion of CalRecycle, beginning in 2020.

AB 1826 also required the City to begin offering a full -scale commercial food scrap recycling program on or before January 1, 2016. Given this requirement, Council approved the existing pilot commercial food scrap program be scaled up to include all Napa food scrap generating busin esses and that the program began on April 1, 2015. A rate study was conducted in late 2014 and result in the City establishing a commercial food scrap collection rate that was/is 75% of the Municipal Solid Waste (MSW) charge. This disc ounted rate reflected the true costs collection and processing of commercial food scraps (and soiled paper) with collection costs being roughly equivalent to MSW collection, but the cost of processing the collected compostable materials at the City’s MDF being roughly half the cost of MSW landfill disposal via the Devlin Road Transfer Station (which the City is contractually bound to deliver MSW per membership agreement with the Napa -Vallejo Waste Management Authority). This rate provides revenue to pay fo r the program and also encouraged the restaurants/food generators to separate the food scraps in order to save money on their collection service.

Food scrap programs take time and attention to implement. Care had to be taken to train each restaurant to (a) segregate the food scraps from other trash, and (b) make sure there are no plastics or glass in the food scraps. This latter requirement is crucial, because the food scraps will be composted and made

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13 into soil amendment. The soil amendment (compost) cannot be sold if there are pieces of glass or plastic in the finished product. The fo od scrap diversion program has also taken into account the flow of food through a restaurant’s kitchen, from raw food preparation, through cooking and clearing of leftover food scraps from customers. The program must fit into the chef’s operations and provide a convenient method to segregate the food scraps from trash throughout the food preparation process, while taking up the least amount of space in kitchens that are usually already very full of equipment, personnel and supplies. Training of all restaurant management and staff is key to a successful program. And finally, the training and monitoring of the program must be continued periodically as staff and management turnover are frequent in the restaurant business. This attention training, combined investment is an organic pre-processing system at the City MDF have resulted in a very low residue/contamination rate of less than 2% in CY2018.

Due to the time required to implement the food scrap diversion program at each restaurant , staff anticipated a slow but steady increase in the commercial food scrap composting program and that has come to fruition. B y the end of calendar year 2 016 there were approximately 76 restaurants/food generators (building on the original 50 pilot program participants) participating in the commercial food scrap diversion program diverting over 1,500 tons of food scraps that year. By the end of calendar year 2018 there were approximately 151 restaurants/schools/food generators participating in the commercial food scrap diversion program diverting over 2,400 tons of food scraps for the year. By the end of 2020, staff anticipate that the program will be implemented at 250 Napa restaurants, schools, grocery stores and other food waste generators as required by AB 1826 and the program is projected to divert over 3,000 tons of food scraps per year. Costs for this program are contained in row 35 of Appendix D to this rate study.

2.3.5 Full Scale Residential Food Scrap Diversion Program:

During 2013 the City authorized NRWS to conduct a pilot residential co -collection program to add food scraps to the yard trimmings collection program. The pilot commenced in June 2013 and was conducted on two residential yard trimmings collection routes serving approximately 1,500 homes in the Browns Valley area of Napa. The co -collected organics (food scraps and yard trimmings ) were composted at the Napa MDF. The pilot program provided some data on the quantity of food scraps that reside nts would place in the yard trimmings container in the event the program was implemented on a city -wide basis. As noted in Section 4 below, the City completed the pilot and expanded it into a full -scale residential food scrap diversion program beginning in April 2015.

The program provided education and “kitchen scrap” pail to each residence for storage of foo d scraps.

Each resident was asked to empty the pail periodical ly into their existing yard trimmings cart (which became a “compost” cart with food scraps and soiled paper mixed in with the yard trimmings). The expanded range of residential organics collected by the existing organics collection truck and delivered to the Napa MDF for composting.

Since the introduction of the full-scale residential food scrap program, the results have been measurable and significant. On a ton -for-ton basis, the residential MSW disposal route has been reduced by 10 - 13% on average. This translates to approximately 1,800 -2,300 tons of reduced landfil l disposal each year (which in turn constitutes an annual net savings of $ 74,000 to $94,000 of avoided disposal/lower processing costs) each year. It also translates into somewhere between a 1 to 1 ½ percent improvement towards the City’s 75% landfill diversion goal. Annual costs for this program are contained in row 25 of Appendix D to this rate study.

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14 2.3.6 Impacts of SB 1383 Implementation

As noted in the Executive Summary of this report, SB 1383 became effective January 2022. Through a combination of City Waste Prevention Specialists working with added NRWS recycling outreach and customer service staff, there has been a marked improvement in the recovery a

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15 CHAPTER 3: PRIMARY DRIVERS FOR

RATE ADJUSTMENTS

Section 3.1 2018, 2022 & SB 1383 CONTRACT AMENDMENT WITH NRWS

On April 17, 2018, the Napa City Council considered and approved the 2018 Contract Amendment with NRWS. This amendment to City Agreement No. 8687 extended the City’s agreement with NRWS for a 14-year period (through end of CY2031). Beyond extending the term of the agreement with NRWS, the 2018 contract amendment accomplished the following:

(1) Provided for new generation of NRWS heavy refuse and recycling fleet, with 20 new compressed natural gas (CNG) and 8 refurbished CNG vehicles by the end of CY2020. (2) New and replaced-as-needed collection equipment will be provided to City customers by NRWS. This included residential carts as well as commercial carts, bins and roll-off drop boxes as needed during the 14-year contract extension term. (3) NRWS guaranteed a new flow of 30,000 tons of compostable organic materials to the City’s MDF for at least the first 10 years of the contract extension. (4) A new full-service customer payment office within the City limits (598 Lincoln Avenue) and additional storage for the benefit of the City (at 600 Tower Road) were secured from NRWS. (5) New processing equipment at the City MDF is secured by the 2018 Contract Amendment including millions of dollars of upgrades to the recycling sorting facility and composting operations.
(6) Reset the “base” contractual operating costs with fixed 3.5% (labor) and 2.5% (non-labor) cost of living increases for first five years of the contract extension (CY2018 through CY2022). “Base” (i.e., pre-known capital and operating) contractual costs established by the 2018 Contract Amendment are shown in Figure 1 below. Base costs do not include unit- based compensation to NRWS such as over-baseline processing payment or share of material sales revenue.
(7) Preserves and enhances financial incentives for continuously improved landfill diversion and a performance-based compensation for NRWS.

The net financial impacts of the 2018 Contract Amendment were estimated at $2,060,000 annually by the end of CY2019. The complete staff report as well as the adopting resolution (R2018-043) are contained in Appendix B to this rate study. As indicated in the April 2018 staff report, a rate increase of 10.5% is necessary to accommodate increased improvements and expenses associated with the 2018 Contract Amendment.

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16 Figure 1: Chart Showing Changes in Base (Fixed) Capital and Operating Payments from City FY2017/18 through FY2021/22 per 2018 Contract Amendment $11,462,323
$13,373,643
$14,152,306
$14,713,320
$15,047,545
$8,000,000
$9,000,000
$10,000,000
$11,000,000
$12,000,000
$13,000,000
$14,000,000
$15,000,000
$16,000,000
FY17/18 FY18/19 FY19/20 FY20/21 FY21/22
Base Contract Payments to NRWS*
* Note: “Base” Contract Payments refers to pre-set capital and operating payments and does not include unit-based compensation to NRWS such as over-baseline processing payment or materials sales share (30% standard materials sales or 95% share of MDF direct sales).

An independent study to review the cost associated with the 2018 Contract Amendment was commissioned by the City and conducted by the solid waste consulting firm of Hilton, Farnkopf and Hilton (HF&H). The full findings of this study are presented in Appendix C to this report. In brief, the study concluded that the 2018 Contract Amendment was: (1) mathematically accurate for proposed cost forms, (2) NRWS proposed costs are “favorable compared to HF&H benchmarks for historical and comparison data,” (3) the use of fixed escalators (3.5% for labor and 2.5% for other costs) for the first 5 years of the 14-year extension appear to be reasonable, (4) costs for new and/or expanded program including Biomass/BioEnergy plant(s), commercial food scrap collection, Recycle More program, facility stormwater treatment and operation and maintenance of Covered Aerated Static Pile (CASP) composting system all appear reasonable and (5) capital costs, depreciation schedules, interest and projections for capital assets appear reasonable and in line with expected costs based on HF&H industry benchmark data.

Section 3.2 DRAMATICALLY INCREASED FUEL AND ENERGY COSTS

A rapid and significant increase in the cost of fuel for NRWS collection vehicles and electricity for operation of the MDF has been experienced since the time of previous rate setting and is expected to continue to increase in the next five years. Full reimbursement of actual NRWS fuel and MDF

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17 electricity costs (once documented and verified) is built into the City-NRWS Agreement. In CY2019 (time of previous multi-year SWR rate setting), the combined cost of fuel and electricity was $1.22 million. By CY2024, the combined fuel and electricity cost had risen to $2.46 million, a 101.6% increase. Projections for fuel cost are a 5.35% increase per year for the next five years and an 11% per year increase for electricity for the next five years. If these projected increases materialize as projected, the cost of fuel and electricity will be $3.53 million in CY2029 (a 43.5% increase compared to CY2024 actual fuel and electricity costs) creating an additional $1.07 million obligation for the SWR Fund. As noted above, at current collection service rates, every $310,000 in additional costs is approximately 1% of collection service rate revenue. Thus a $1.07 million increase constitutes a

3.45% increase by itself over current collection service rates.

Section 3.3 MDF CAPITAL IMPROVEMENTS EXPENSES AND DEBT SERVICE COSTS

3.3.1 MDF Capital Improvements:

As new light industrial uses have moved in to properties near the Napa MDF, the City determined there was a need to improve odor control at the composting facility and in the ponds that treat the water used in the compost process. Mitigating these issues were nec essary in order to responsibl y receive and process food scraps/food waste at the City’s MDF as well as comply with more stringent solid waste, air and stormwater permit regulations. During 2012 -2014 the City completed environmental mitigation improvements in and around the wood and composting processing area of the MDF including construction of two large particulate enclosures for the grinder and the screener plus enhanced bird control. The cost was $610,000 with the City and NRWS each paying half the cost.

Concurrent with the installation of these improvements, the California Air Resources Board was studying potential new regulations for discharges to air from composting facilities. Several alternate methods for capturing and treating discharges to the air o f volatile organic compounds and particulate are currently available including placing finished compost “caps” on outdoor compost piles, using fabric covers on the piles, and a method called “covered composting” wherein the compost piles are placed in a fully enclosed building. During FY 2011/12 the City retained CH2MHill to assess the options available to the City for the composting of yardwaste, food scraps, pomace, manure, wood and other materials that would meet both the anticipated new stormwater regulations and the anticipated future changes to the Bay Area Air Quality Management District (BAAQMD) regulations for composting facilities. The final report was issued in August 2012. Based upon the results of the CH2MHill study, City staff determined that specific stormwater improvements and construction of a covered compost system would enable the City to comply with both the new stormwater regulations and the anticipated changes to the BAAQMD regulations for the foreseeable future.

The Napa Renewable Resources Project (NRRP) was initiated to cover five elements of planned and/or potential improvements. The two “need to have” improvements were (1) a shift from open -air turned window system to a “covered” compost system and (2) upgrad es to the Napa MDF’s stormwater management system, particularly for any water that came in contact with active compost during the first 3-4 weeks of composting process.

In 2015 and 2016, a $2.5 million organics receiving building was constructed at the MDF as well as a $2.9 million “organics pre -processing system” to receive, screen, sort, grind and generally remove contamination from compostable organics received at the Napa MDF. In 2017, NRWS received a CalRecycle grant for a n organics “de -packaging” machine that would allow the facility to separate

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18 expired or off-spec food from plastics or paper packaging for composting. The organics de -packager was installed in late 2018 at the Napa MDF and became operational at the beginning of 2019.

The City successfully issued $12.5 million in Solid Waste Revenue Bonds (“SWRB”) in 2016. The timing of the SWRB was fortunate for the solid waste payer as the City’s 2016 SWRB were issued with an overall average interest rate of 3.15% (with an annual average debt service cost of $868,646) with the total annual debt service costs (including principal, interest and fiscal agent fees) are shown in rows 19- 21 of Appendix D. Please see Appendix G to this rate study for Executive Summary of the 2016 SWRB results and debt service schedule.

Design-Build (DB) Request for Proposals (RFPs) for these bond -funded facility improvements were issued in April and May 2017. A $2.1 million DB contract for construction of the southeast corner concrete and roof extensions was finalized with Ledcor Constru ction in September 2017 and work completed in May of 2018. In February 2018, Council approved a resolution to authorize a not-to-exceed $10.4 million DB construction contract for covered compost operations and stormwater improvements with Overaa Construction (Overaa). The work is anticipated to be completed in early 2020.

The CASP compost system will provide a fully enclosed composting area where food scraps, pomace, manure and other materials that can produce odor, will be received, pre-processed, and then composted in concrete bunkers operated in an enclosed facility. The facility will use forced air to aerate the compost in the concrete bunkers, which will promote the composting process. The existing composting system, consisting of outdoor windrows (referred to as “turned windrows” because the aeration is accomplished through manual turning of the windrows by loaders) continues to be used during th e transition to the CASP system. Once CASP construction is completed and the necessary permits are issued by the Bay Area Air Quality Management District, open -air windrow composting will be replaced entirely by active composting in the CASP system.

As a result of adding debt service to construct improvements to meet regulatory and operational requirements, cost to the Fund increased by nearly $900,000 which requires a 4.5% rate increase.

Section 3.4 NEW PROGRAMS AND COST CHANGES PLANNED OR PROPOSED FOR 2025, 2026, 2027, 2028 AND 2029

3.4.1 New Emissions Testing Requirements from Air District for CASP Composting System at City MDF:

As described previously in this rate study, a new Covered Aerated Static Pile (CASP) composting system is being installed at the City’s MDF. A permit application for operation of the new CASP system is still pending with the Bay Area Air Quality Management District (BAAQMD) at the time of this report. While not yet finalized the draft permit conditions require an extensive air emissions samp ling and testing protocol for the first year (four quarters) of operation to fully demonstrate the effectiveness of the CASP composting system to control and limit air emissions from the new composting system. Inbound tonnage received and composted onsite at the MDF will be restricted to approximately 63,000 tons during the first year of this testing protocol (as opposed to the approximately 44,000 tons allowed to be composted onsite with the current open air, turned window comp osting system). After the first year of extensive testing, annual testing and more limited monthly reporting are anticipated to be required by the BAAQMD. At the time of this report, it is estimated the first year of extensive, one-time initial emissions

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19 testing will cost approximately $800K beginning in October of 2019 and continuing through the end of September of 2020. Beginning in October of 2020, it is estimated the recurring/ongoing emissions testing for BAAQMD will cost an estimated $250K per year. Expenditure projections for this new emissions testing is also addressed row 83 of Appendix D , with the $800,000 initial testing placed in nonrecurring budget and $250,000 per year in estimated ongoing emission testing costs included in recurring expenditures thereafter.

3.4.2 Addition of Residential Low-Income Assistance Program:

City of Napa water rates began a low -income assistance program called “ RateShare” in 2012. While the City’s solid waste/recycling rates have always considered the residential 20 -gallon size as the “lifeline” option (and this might be true for seniors on a fixed income for example), it is not a truly equitable way to address larger low -income households that would presumably generate la rger amount of non - recyclable, non-compostable Municipal Solid Waste (MSW). Given this inequity, City staff is recommending that a new low-income assistance program modeled on Water’s RateShare program be implemented. In short, the low -income assistance program for solid waste would u se qualification criteria based on the established Pacific Gas & Electric (PG&E) California Alternate Rates for Energy (CARE) program. It is staff’s understanding that approximately 3,600 residential households in the City of Napa currently qualify for PG &E’s CARE program and that approximately 900 of these households currently utilize Water’s RateShare program.

In accordance with Proposition 218 (Prop 218), a water or solid waste customer is to pay only for the cost of service provided to that customer. Thus, to maintain Prop 218 compliance an assistance program can only be funded by a non -rate based source, to prohibit one rate paying customer from subsidizing another customer. Materials sales revenue is proposed to be used for this new low-income assistance program at a level of $150,000 per year (row 40 of Appendix D). Like water’s RateShare program, the low-income assistance program for solid waste would use eligible CARE households within the City on a first come, first serve basis. Staff is proposing a flat $10 per month ($120 per year) level of assistance to participating residential households. This would allow up to 1,250 solid waste customers to participate in the low-income assistance program.

3.4.3 New Sunday Commercial Service:

Starting July 1, 2018 (as part of the 2018 Contract Amendment with NRWS), new commercial service on Sundays was introduced. The new Sunday service provided additional collection opportunities for three commercial solid waste streams, namely MSW, commercial food scraps and commercial recycling.

The new service was prompted by sometimes over -flowing MSW, recycling and food composting equipment (particularly for restaurants and hotels). Prior to Sunday service, businesses that generated more solid waste mate rials over weekends would have to wait from Saturday to Monday (MSW and recycling) or even Friday to Monday (food composting) for service opportunity. The new Sunday service is gradually adding accounts towards a maximum of 75 stops for each line of service. The new Sunday service will also help with significant amount of community special events which tend to be on Saturdays and would previously have to wait until Mondays following event for collection service and haul in of temporary equipment provided to special events. A s the time of this report (May 2019), the current monthly cost of commercial Sunday service is $5,345 per month ($64,140 per year) and is reflected as part of base capital and operating payments to NRWS (row 25 of Appendix D).

3.4.4 Contribution to Risk Management Fund for Hidden Glen Landfill Liability:

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20 The City owns the property on which the former “Coombsville Dump” (aka Hidden Glen Landfill) is located. That landfill property is the subject of a closure plan, that was approved in 2001 by the then California Integrated Waste Management Board (now California Department of Resources, Recycling and Recovery or “CalRecycle”). The closure plan includes provisions for landscape improvements over the cap on the property as a part of the closure, which will be the site of future City park, along with ongoing maintenance of the property, all of which are designed to ensure the physical integrity of the cap over the former landfill.

Since the approval of the closure plan in 2001 to date, the City has incurred costs related to the closure of the Landfill in accordance with the closure plan, which has included the defense and settlement of a lawsuit alleging that the City breached its obligations under the closure plan.

To date, the City has incurred costs related to the settlement of the lawsuit in the amount of approximately $5 million and those costs have been paid from general fund revenue sources (the Risk Management Fund). Since the City’s purpose of acquiring the site of the former landfill served a dual purpose of closing a former landfill (which is a legitimate cost of the Solid Waste Enterprise to be equitably allocated to ratepayers who use the services of the Enterprise), as well as providing a public benefit for a future public park (which is a legitimate expense of the City’s general fund to be equitably allocated to taxpayers), the City has equally allocated the costs of closing the landfill to the Solid Waste Enterprise and the Risk Management Fund. Therefore, there is a balance of $2.5 million (50% of $5 million) to be paid by the Solid Waste Enterprise Fund to cover the proportionate costs of obligations under the closure plan.

In addition to the costs that have been previously incurred, there are pending claims filed by owner of residential property immediately adjacent to the former landfill property, alleging that debris from the former landfill has spilled into the adjacent properties and the City is responsible for costs to remediate the debris. The City is currently in the process of evaluating those claims.

The Risk Management Fund has already paid for litigation costs and will be used to pay for soil remediation costs, if necessary. The SWR Fund will make annual contributions to the Risk Fund to cover the SWR Fund’s proportionate responsibility for closure of the landfill. The level of funding is 400,000 per year, to be transferred from the SWR Fund to the Risk Management Fund (shown in row 18 of Appendix D). The source of revenue for this transfer will be material sales.

In the Solid Waste Rate revenue collected between RY2009/10 and RY2010/11, the City collected $310,000 to cover the estimated costs of the capital improvements required as part of the closure at the former landfill site. The improvements initially planned to be built with those funds have not yet been completed by the City. These funds will be deobligated and be used for other expenses in the Fund. When the improvements are constructed, the Risk Management Fund will pay for the improvements with SWR Funds proportionate share being covered by the annual contribution as described above.

In addition to the above costs, the City has included a projected annual maintenance charge of $33,000 in the upcoming City FY2019/20 budget (row 15 of Appendix D). This projected maintenance cost is escalated by inflation each year to be utilized for maintenance costs at the site of the former Landfill (including local enforcement agency monitoring fees and minimum property maintenance cost, as well as costs that are anticipated to be incurred after the Hidden Glen passive park is constructed).

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21 Chapter 4: Financial Position of SWR Fund

Section 4.1 PROJECTED REVENUES UNDER EXISTING RATES

Appendix D to this rate study shows all of the projected revenues and expenditures for the Fund for Rate Year (RY) 2019, RY2020, RY2021 and RY2022 . The following descriptions of the projections refer to details contained in Appendix C. The key revenue and expense line items (not already described above) are described in more detail below. The row numbers from Appendix C are included for reference to the actual spreadsheet containing all of the projected SWR Fund revenues and expenses. Some rows were not used in the spreadsheet and only the significant revenues and expenses are described below, so there is not a discussion for every row. Several of the projected figures include cost escalation per t he City’s Long Term Financial Forecast (LTFF). This forecast is prepared by the Finance Department and includes the inflation rates to be used by City departments for each cost category included in the City’s General Fund budget (3.0% for External Services, 3.9% for internal services). In the case of other costs (such as several of the NRWS operating costs) staff has utilized the pre-set 2018 Contract Amendment escalators (3.5% for labor and 2.5% for non -labor cost s) per Contract/Ca lendar ( CY) or different projected in flation rates that are more applicable to certain NRWS contractual costs (such as over - baseline throughput processing costs) . All projected revenues and expenses for each rate year are shown in terms of City Fiscal Year (July through June) for consistency with City budget practices.

The main revenue streams for Solid Waste and Materials Diversion Fund are:

• Collection service revenues including:
i. Payments from customers for residential, multi -family, commercial and roll off services
ii. Payments from City Facilities for collection services iii. Payments from Napa Valley Unified School District (NVUSD) for collection services
• Revenues from sale of recyclable materials, compost and other materials marketed from the MDF (the City re tains 70% and NRWS receives 30% for the “secondary” materials like paper, metal, glass and plastics while the NRWS receives 95% and the City retains 5% for “direct” materials sales such as compost and gravel per the terms of the 2018 Contract Amendment).
• Gate fees received from public customers delivering loads of recyclables, wood, yard waste, concrete, etc. to the Napa MDF
• Payments from Napa County for processing recyclable and compostable materials at the Napa MDF
• Processing fees paid by other regional users of the Napa MDF (e.g. Sonoma Garbage Service, Recology, Cultured Stone, etc.)

4.1.1 Collection Service Revenues (Row 2 of Appendix D)

Collection service revenues are projected for five types of customers (or “service lines”) in the City:
residential, commercial, multifamily, roll off/compactor, and the Napa Valley Unif ied School District (NVUSD). In Figure 3 below, recent solid waste rate revenue history is presented by line of service for

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22 City Fiscal Year (“FY”) 2013/14, FY2014/15, 2015/16, FY 2016/17, FY 2017/18 and projected FY2018/19 (based on first half City FY - July 2018 to December 2018 - doubled).

Figure 3: Collection Service Rate Revenues from City FY2018/19 through FY2024/25 (Projected)

7599916.96 7641475.53 7401979.36 7548781.51 8328841.73 8380411 4590735.85 4857382.2 5626867.61 5573897.18
5584109.17 5803390.96
2806996.35 3590872.6 3375794.23 3374803.9
3300272.12 3467525.91422089.25
1512351.4 1489172.44 1687421.07
1694061.71 1624561.14
280661.58
264959.45 296282.5 301114.08
312153.96 322767.84
16700399.99
17867041.18 18190096.14 18486017.74 19219438.69 19598656.84 0 5000000
10000000
15000000
20000000
25000000
FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 *Projected FY 18/19* RATE REVENUE BY SERVICE LINE - FY 18/19 - FY 23/24
Residential Commercial Roll-Off Multi-Family NVUSD

Cumulative collection service revenue (with and without collection service rate adjustments) is shown in row 2 of Appendix D. The components of this revenue are as follows:

a. Residential Revenue

Residential revenue consisted of $8,328,842 or approximately 43.3% of the total collection service revenue for City FY 2017/18 (total collection revenue was $19,219,439 for FY 2017/18). Residential revenue accounts for the largest percentage of collection revenue to the SWR Fund. Residential revenue grew an average of 5.4% per year for the period 2014 through 2018. The average number of residential accounts has increased from 21,821 in 2014 to 22,097 in 2018.

Residential customers can choose to use 20, 35, 65 or 95-gallon carts for solid waste. The rate charged increases with the size of the cart. Over the past several years there has been a trend away from using the two largest size carts (65 and 95 gallons) and toward using the two smallest sized carts (20 and 35 gallons), with the 35-gallon size now being the most common customer choice (accounting

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23 for 11,395 of the total 22,097 residential service customers as of December 2018). Please see Figure 4 below for changes in residential solid waste service sizes from CY2013 through CY2018.

Figure 4: Residential Solid Waste Service Cart Sizes from CY2019 to CY2024 3,884 3,992 4,408 4,655 4,755 4,795
11,411 11,369 11,358 11,301 11,355 11,395
6,193 5,939 5,814 5,452 5,331 5,309
547 521 510 522 540 598
22,035 21,821 22,090 21,930 21,981 22,097
CY2013 CY2014 CY2015 CY2016 CY2017 CY2018
Number of Households with Different Cart Sizes - 2019 - 2024 Number of households - 20 gallon Number of households - 35 gallon Number of households - 65 gallon Number of households - 95 gallon

b. Multifamily Revenue

Multifamily revenue consisted of $ 1,694,062 or approximately 8.8 % of the total collection service revenue for City FY 2017/18. Multifamily revenue accounts for the fourth largest percentage of collection revenue to the Fund and grew by an average of 4.8% per year for the period 2014 through 2018 . The number of multifamily accounts in Napa has been relatively constant at 88-91 accounts for the period 2014 through 2018.

c. Commercial Revenue

Commercial revenue consisted of $5,584,109 or approximately 29.1% of the total collection revenue for City FY 2017/18. Commercial revenue is the second largest rate revenue stream to the SWR Fund and grew by an average of 5.4% per year for the period 2014 through 2018. The average number of commercial accounts has increased from 1,107 in December of 2014 to 1,217 in December of 2018.

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24 d. Roll Off/Compactor Revenue

Roll-Off Box/Compactor service revenue consisted of $3,300,272 or approximately 17.2% of the total collection revenue for City FY 2017/18. Roll-Off Box/Compactor revenue is the third largest rate revenue stream to the SWR Fund and grew by an average of 4.4% per year for the period 2014 through 2018.

The number of “permanent” (vs. one-time or “temporary”) Roll-Off Box/Compactor MSW accounts has increased from 272 in December of 2014 to 342 in December of 2018.

Roll off collection service for construction and demolition debris projects in Napa is non-exclusive (and thus not property related unlike “fixed” residential and commercial accounts utilizing roll-off box collection services). This means NRWS competes with several independent companies for the roll off business at construction job sites and at businesses and residences (e.g. for roofing and remodel projects where a debris box is needed). Pursuant to its contract with the City, NRWS must charge the City -established rates for solid waste and recycling collection in roll off containers and compactors. The City-established rates for solid waste collection are higher than those charged by competitors. The City-established rates for collection of source-separated recyclable construction and demolition materials (e.g. a debris box on a construction site that contains source separated metal or cardboard or wood) are generally lower than the rates charged by competitors. The City intentionally established lower rate s for collection of recyclables to provide an economic incentive to construction sites to comply with the City’s Construction and Demolition Debris Recycling Ordinance and to increase the City’s overall level of recycling. Due to the rate differential, construction job sites frequently split the job and use NRWS to collect the boxes of source-separated recyclable materials and another company to collect the solid waste debris boxes.

Some commercial and multifamily customers are switching to roll off service. This is not likely to create a large swing in the roll off revenue, but i t may offset some of the revenue loss from the construction jobs that are ending or recently ended.

e. Revenue from Napa Valley Unified School District

The City and the N apa Valley Unified School District (NVUSD) entered into a Memorandum of Understanding in 2005 to have the City include NVUSD in its procurement for a solid waste and recycling collection contractor. NRWS was the selected contractor and provides collection services to NVUSD at a cost that was included in NRWS’ s proposal to the City. As an entity of the State of California, the NVUSD has a unique contractual collection service rate established and adjusted each July 1 st by the terms of the Memorandum of Understanding between the City of Napa and the NVUSD. NVUSD pays NRWS (through the City) for processing its recyclable materials and for disposal of solid waste at the Transfer Station.

The collection service from the NVUSD is smallest collection service rate revenue stream. It was $312,154 or approximately 1.6 % of the total collection service revenue for City FY 2017/18. The cost for collection services in the City-NVUSD contract is adjusted by specified inflation indexes each year.

NVUSD revenue is projected to escalate by 3% per year for FY 2018/19 through FY 2021/22.

4.1.2 Revenues from MDF Gate Fees and Sales of Compost, Topsoil and Gravel (Row 3 of Appendix D)

This category includes revenue from (a) self-haul customers paying the posted gate fees at the MDF, (b) tip fees paid by the County of Napa for processing yard trimmings , recyclable materials and food

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25 scraps at the MDF, (c) payments from regional recycling and solid waste collection companies delivering materials to the MDF for processing, (d) tip fees paid by Cultured Stone for processing of rock, and (e) the sale of compost, topsoil and gravel produced at the MDF, also known as “direct” materials sales.

Self-haul customers include landscapers, construction companies, roofers and members of the public who bring a broad range of materials to the Napa MDF including yard waste, wood, concrete, and manure. Due to space constraint at the MDF, the City stopped accepting self-haul dirt at the MDF as of April 1, 2012. (Self-haul dirt is accepted at the Devlin Road Transfer Station for a fee, currently $40 per ton). Self-haul customers pay the posted gate fees (as approved by Council) at the MDF scale house.

In 2005, the City signed a Memorandum of Understanding (MOU) with the County of Napa to process curbside and commercial recyclable materia ls and to compost the yard trimmings and collected in the County. Pursuant to the Agreement the County pays the City of Na pa for composting the yard trimmings. The City pays the County a fixed dollar amount per ton for the curbside and commercial recyclable materials. The value received from sale of these materials roughly covers the cost of sorting and marketing the recyclable materials at the Napa MDF. In 2013 the City began composting food scraps from the County pilot commercial food scrap collection program. The price currently paid by the County includes the incremental cost of composting the food scraps and soiled paper at the MDF.

The existing MOU with the County of Napa ends in December 2019. City staff will be in the process of negotiating a long -term extension of the agreement with Napa County to match the County recent contract extension with its hauler (Napa County Recycling & Waste Services, LLC or “NCRWS”) through CY2028 (or longer to match City’s current agreement with NRWS through end of CY2031 if desired by Napa County). Under the terms being discussed, the County would pay an increased rate for processing compostable organ ic materials at the MDF commensurate with the capital investments and higher processing costs incurred by the City (and paid to NRWS). The arrangements for processing recyclable materials (glass, plastics, cardboard, paper, etc.) would likely be much lower than historical MOU pricing given the steep decline in markets for recyclable materials described earlier in this rate study. City rate payers cannot subsidize use of the City’s MDF by Napa County and contractual pricing is adjusted accordingly periodically in response to market realities.

Depending upon market conditions and availability of other processing options, some local recycling and solid waste collection companies, such as Sonoma Garbage, deliver materials (including yard trimmings, food scraps, and/or recyclable materials) to the Napa MDF for process ing. These companies usually agree to deliver a large quantity of material ov er a pre-established period of time and are often offered optimized pricing by the City in recognition of this commitment to use the Napa MDF.

Compost, topsoil and gravel produced at the Napa MDF are sold to local landscapers, wineries, contractors and the general public . Compost has bee n sold at an average price of $10 per ton in the past. As noted above, p ursuant to the City’s contract with NRWS for operation of th e Napa MDF, the City receives 5% of the revenue from sale of the “direct” materials such as compost, topsoil and other products produced at the MDF and NRWS receives 95% of the revenues. The revenue figures included in Row 3 of Appendix D include 100% of the revenues from sale of direct sales (i.e., compost and gravel).

The payment to NRWS of their 95 % share of direct materials sales is described below in the section

3.5.2 of this report, and is included in the figures in Row 27 of Appendix D.

MDF gate fees are not subject to the Proposition 218 notice requirements and, therefore, may be adjusted by the City Council at any time.

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26 4.1.3 Sale of Secondary Materials (Row 4 of Appendix D)

The recyclable materials processed at the Napa MDF include cardboard, junk mail, other types of paper, aluminum, plastic and glass beverage containers, other glass and plastic household containers, film plastics, used motor oil, used cooking oil, and electronic waste. The recyclable materials delivered to the MDF include materials collected in the City of Napa by NRWS, those collected in the County of Napa by NRWS’s sister company NCRWS, those received by Northern Recycling at the transfer station and delivered to the MDF for processing (see Section 6 B 5 below for details about the City’s processing agreement with Northern), materials delivered by the public and materials delivered by other recycli ng and solid waste collection companies in the region. The materials are marketed by NRWS domestically and internationally directly to buyers and often using materials brokers.

As described above in section 3.2.2 of this rate study, there has been a steep decline in revenue received from secondary materials sales, particularly for material shipped to overseas buyers. This trend is expected to continue for the foreseeable future and revenue projections are largely flat

4.1.4 Total Projected Revenue

The total pro jected base revenue for City FY2019/20 prior to applying any collection service rate adjustment is $30,383,500. The total projected base revenue for City FY2019/20 with proposed rate adjustments is $33,833,100 as shown in row 13 and row 89 of Appendix D.

Section 4.2 PROJECTED EXPENDITURES

The projected expenses for Solid Waste and Materials Diversion Fund for FY2019/20, FY2020/21 and FY2021/22 are listed in Appendix D from rows 14 through row 88, some of which are described in more detail below.

4.2.1 Transfer to General Fund Based on Cost Allocation Study (Row 16 of Appendix D)

The Fund pays for support from other City departments based upon a periodic Cost Allocation Study.

The cost for FY 2019/20 is $400,900 (which is approximately $88,750 more than FY2018/19) based on updated Cost Allocation Study. The budgeted cost for FY2020/21 is $412,900 and the projected cost for FY2021/22 is $429,500.

4.2.2 Street Mitigation/Repair Costs (Row 17 of Appendix D) During the 2009 rate setting , the Napa City Council voted to add a cost for repair and maint enance of streets due to impacts caused by the weight of the MSW, recycling and yard waste collection vehicles and the roll-off vehicles. The cost estimate for the annual impacts caused by the collection vehicles was $1.6 million, based upon an analysis performed by Hilton, Farnkopf and Hobson (HF&H) in 2004 and updated in 2009. This cost was phased in over a three-year period. This base cost from the HF&H has been indexed for inflation each FY and was $1,960,00 for City FY2018/19. In preparation for this rate- setting process, a new street impact study was commissioned by the City and conducted by the consulting firm GHD. The GHD updated study was completed in April 2019 and full analysis and findings are as Appendix I to this rate study. Annual City street repair and maintenance costs from the City of Napa Public Works Department is Appendix J to this rate study. In summary, the updated 2019 analysis

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27 found that the heavy refuse and recycling collection fleet account for 11.6% of the impacts to City streets (down from 15.1% in 2009). Among other changes, the 2019 study took into consideration a third axle on the new NRWS collection fleet which reduced the impacts from these vehicles on City streets. Please see following Table 1 for a summary of these findings.

Table 1: Roadway Impacts from Different Types of Vehicles on City Streets

Based on the 2019 analysis and updated street maintenance and repair cost information from the City’s Public Works Department, the new annual contribution for refuse and recycling c ollection vehicles is $1,113,60 (row 17 of Appendix D). The street mitigation/repair costs currently represent approximately

5.8% of the SWR Fund’s collection (rate-based) revenue.

4.2.3 Transfer Station Tipping Fees (Row 23 of Appendix D)

The Devlin Road Transfer Station is owned by the Napa Valley Waste Management Authority (NVWMA) and is currently operated by Northern under contract to the NVWMA. The tipping fee increased by $1 per ton to $70 per ton on October 1, 2018. Under the current adopted NVWMA rate plan, t his rate will increase by $1 per year each October 1 with next increase slated for October 1, 2019. The budgeted cost for FY2019/20 is $3,400,000 with FY2020/21 at $3,500,0 00 and the projected cost for FY2021/22 is $3,605,000. Transfer Station disposal costs currently represent approximately 16.8 % of the SWR Fund’s collection (rate-based) revenue.

4.2.4 Contractual Payments to NRWS (Rows 25-39 and Row 44 of Appendix D)

Payments to NRWS to perform solid waste and recycling collection service and to operate the Napa MDF are the largest expense of the Fund. Pursuant to the City’s contract with NRWS (and as revised under the terms of the 2018 Contract Amendment), costs are adjusted annually on January 1. Per the 2018 Contract Amendment with NRWS, labor related costs were reset as of July 2017 and escalate at a fixed 3.5% with non-labor costs increased at 2.5% for first five years (through CY2022) of the 14-year

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28 extension. Starting with CY2023, contractual increase will based upon a specific group of indexes for labor, fuel, supplies, etc. Pursuant to the City’s contract with NRWS, the company is c ompensated in the several ways:

a. Operating and Capital Cost Payment (Row 25 of Appendix D):

NRWS was selected through a competitive procurement process in 2004. They proposed a base price per year to perform all residential, commercial, multi -family and roll off solid waste and recyclables collection in the City as well as operation of the Napa MDF. This price is escalated annually by a weighted group of indexes including the CPI, PPI, fuel and labor indexes. The City’s contract with NRWS was originally scheduled to end December 31, 2015 but the City had up to 4 one-year extension available of which the City exercised 2 years (CY2016 & CY2017). The 2018 Contract Amendment (approved by Council in April of 2018) extended the City’s agreement with NRWS for 14 years (through end of CY2031). The budgeted cost for FY2019/20 is $ 13,096,000 with FY2020/21 at $13,624,500 and the projected cost for FY2021/22 is $13,928,00. The Capital and Operating Payments to NRWS disposal costs currently represent approximately 66.8% of the SWR Fund’s collection (rate-based) revenue.

b. 3% Base Profit Margin (Row 26 of Appendix D):

In addition to the Operating and Capital Cost payment, the City pays NRWS a fixed profit margin of 3%.

The budgeted cost for base profit to NRWS FY2019/20 is $404,500 with FY2020/21 at $420,500 and the projected cost for FY2021/22 is $430,000. The Base Profit Margin Payments to NRWS currently represent approximately 1.9% of the SWR Fund’s collection (rate-based) revenue.

c. 30% Share of Sale of Recyclable Materials and Compost (Row 27 of Appendix D):

As noted above the City splits revenues 70%/30% with NRWS (secondary materials, which is bulk of material sales revenue) while the City splits “direct” material sales (e.g., compost and gravel) 95% to NRWS and 5% the City . The budgeted cost for share of materials sales to NRWS FY2019/20 is $2,350,000 with FY2020/21 at $2,400,000 and the projected cost for FY2021/22 is $2,472,000.

d. NVUSD (Row 28 of Appendix D):

As described above, NRWS provides collection services to the school district and is paid by the City for these services. NVUSD pays the City for these costs. Pursuant to the City’s 2018 Contract Amendment with NRWS, these costs escalate by 3.5% for first five year of the 14-year extension (through CY2022) and then by a contractual Bay Area CPI labor index thereafter. The budgeted cost to NRWS for NVUSD service in FY2019/20 is $159,000 with FY2020/21 at $165,000 and $170,000 in FY2021/22.

e. Allowance Based Program s and Unit Costs (Rows 29 and 30 of Appendix D):

NRWS receives additional compensation for services that are not included in the base Operating and Capital Cost Payment. Allowance Based Programs are those for which the costs are not escalated annually (E-Waste Recycling Event, Business Recycling Awards Program and the Telephone Directory Recycling Ads). The budgeted cost to NRWS for Allowance -based service is FY2019/20 is $116,000 with FY2020/21 at $116,000 and $116,000 in FY2021/22.

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29 Unit Costs include payment for costs based on tonnage like carpet processing and negative value materials or unit based like bulky items pick-ups. The budgeted cost to NRWS for Unit -based service in FY2019/20 is $400,000 with FY2020/21 at $414,000 and $426,500 in FY2021/22.

f. Payment for Processing Cost Over Baseline (Row 31 of Appendix D):

NRWS is paid an extra payment per ton for processing tons of materials at the MDF over certain threshold limits descr ibed in the City -NRWS contract. The 2018 Contract Amendment rewards and incentivizes NRWS to bring in more materials to the Napa MDF so that third party users of the MDF can help defray fixed costs related to the facility and provides non-City solid waste rate payer revenue. The amendment required NRWS to guarantee at least 30,000 tons per year of “new” materials to the MDF and enhanced the per ton payment to NRWS is each of the four main processing areas (composting, wood, recycling and source -separated c onstruction and demolition debris materials). NRWS has delivered on this commitment and the inbound tonnage has grown substantially with an additional 60,000 tons per year of throughput as compared to CY 2015. The Over-Baseline (OB) processing payment to NRWS for CY2018 was $3,760,508. Future OB payments include projections for increased volume and inflation escalators (as it is adjusted by the Producer’s Price Index each calendar year). The budgeted cost to NRWS for OB processing payment in FY2019/20 is $3,900,000 with FY2020/21 projected at $4,017,000 and $4,137,500 in FY2021/22.

g. Diversion Incentive Payments (Row 32 of Appendix D):

With approval of the Third Amendment to the City -NRWS contract in 2014 , three new Diversion Incentives for NRWS were approved by the City Council. These are the Targeted Incentive (TI) which rewards NRWS with $100 per new roll off box of source-separated recyclable materials they collect and deliver to the MDF for sorting ov er and above the threshold level established in the Third Amendment; the Residue Reduction Incentive (RRI) that rewards the company for achieving residue left over after all sorting and processing operations at the MDF that is lower than a baseline level established in the Third Amendment; and the Collection Incentive (CI) which rewards NRWS for collecting and diverting tons of recyclable materials over and above the baseline level established in the Third Amendment. The purpose of these incentives is to reward increased di version of materials from the transfer station. The avoided tipping fees provide some funds to ward payment of the incentives. The Diversion Incentive payment budgeted for FY2019/20 is $2 00,000 with FY2020/21 projected at $206,000 and $21 2,000 in FY2021/22.

h. Partnership Programs (Row 33 of Appendix D):

The two programs commenced in FY 2008/09 for color glass sorting and rigid (#1 -#7) plastics sorting required the costs for 4 sorting employee positions at NRWS. Per the 2018 Contract Amendment, labor costs are escalated by a fixed 3.5% per year, so the costs are pre -known in advance . The City’s budgeted costs for its 70% share of Partnership Program sorting positions in FY2019/20 is $154,500 with FY2020/21 at $160,000 and $165,000 in FY2021/22.

i. Recycle More Program (Row 34 of Appendix D):

As described above, NRWS now operates the Recycle More program. The costs for the program include the payment for a new vehicle (panel -type truck with a lift gate) plus certain percentages of the

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30 incremental costs for the program as described in the Third Amendment to the City -NRWS contract executed in July 2014. The City’s budgeted costs for the Recycle More program per the 2018 Contract Amendment in FY2019/20 is $6,500 with FY2020/21 at $6,500 and $6,500 in FY2021/22.

j. Commercial Food Scrap Diversion Program (Row 35 of Appendix D):

As also described above, NRWS operates the commercial food scrap diversion program as it is expanded city-wide in 2015 and 2016. Row 91 shows the cost of the expanded commercial food scrap program (per terms of the 2018 Contract Amendment) of $217,000 for FY 2019/20 with FY2020/21 at $222,500 and $232,000 in FY2021/22

4.2.5 Payments for Recycled Material to Northern Recycling and Other Companies (Row 47 of Appendix D)

As noted above, NRWS markets the recycled materials processed at the MDF. NRWS receives 30% of the revenues from sale of these materials (excluding MDF direct sales such as compost and gravel which is not relevant to this budget item). This cost is shown in Row 27. The City also has an agreement with Northern Recycling (a sister company to NRWS that operates the transfer station under contract to the NVWMA) to process recyclable materials at the MDF . The agreement was approved by the City Council in July 2010. In addition to operating the transfer station and a sorting line for separating construction and demolition debris at the station, Northern also operates a Buy -Back Center at the station that accepts recycled materials and that pays for certain recycled materials. Under the terms of the agreement with the City, Northern agreed to deliver all of the recycled materials from the Buy Back Center (such as cardboard, aluminum, all grades of paper, all plastics, all glass, and all metal cans) to the Napa MDF for final marketing. Northern can also deliver other materials such as compostables (yard trimmings and/or food scraps) to the MDF if it desires. The City pays Northern 61% of the actual prices the City receives for all paper and cardboard and for plastic that are not subject to the California Redemption Value (CRV). For plastic, glass, and aluminum cans, bottles and beverage containers and all other materials subject to the C alifornia Redemption Value (CRV deposit), the City pays Northern 69% of the actual prices the City receives for these materials. Since the City splits overall revenues from sale of recycled materials with NRWS 70%/30%, the “net” revenue the City receives from the Northern materials is 9% for fiber and non-CRV plastics, and 1% for CRV plastics, glass and aluminum containers.

For FY2019/20 staff estimates that the materials delivered by No rthern will account for approximately 41% ($2,640,000) of the total secondary materials sales revenue shown in Row 4 of Appendix D . The payments to Northern are found in Row 47 of the Master Spreadsheet in Attachment 3. When markets allow for it, the additional payments in Row 47 are for payments to other companies that use the MDF for processing of materials such as Recology and Sonoma Garbage.

4.2.6 Total Projected Expenditures (Row 89 & 91 of Appendix D)

The total pr ojected expenditur es for FY2019/20 are $33,540,101 as shown in Rows 89 and 91 of Appendix D . The to tal projected expenditur es for FY2020/21 are $34,208,001 and $34,953,600 for FY2021/22.

Section 4.3 STATUS OF RESERVES FOR SOLID WASTE AND

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31 MATERIALS DIVERSION FUND

On August 5, 2008 the City Council adopted a Fiscal Policy for the Solid Waste and the Materials Diversion Enterprise Fund (Resolution R2008 153C) that included specific Reserve Policies and funding targets for each of the Fund reserves. At that time the City Council also approved rates for FY 2008/09 that allowed for all of the reserves to be fully funded by the end of FY 2008/09 (with the exception of the Capital Maintenance and Capital Replacement Reserves which each required an annual contribution in order to fund Capital Maintenance Items and to eventually replace or significantly retrofit the entire MDF at the end of its useful life).

On June 16, 2009, as part of the rate -setting process for FY 2009/10 - FY 2011/12, the City Council adopted revisions to the Fiscal Policy for the Fund (Resolution 2009-82). The main changes made were to exclude from calculation of the 25% floor for the Operating Reserve the following items: capital maintenance project costs, capital replacement project costs, and costs for street repair due to damage from heavy solid waste vehicles. Other refinements to the policy included specifying the procedure for placement of funds left over after completion of capital projects.

On June 18, 2013, as part of the process of approving the City’s FY 2013/14 budget, the City Council again amended the Fiscal Policy of the Fund (Resolution 2013-55). The key changes were (a) to reduce the minimum funding level for the Operating Reserve fr om 25% to 20% of the Fund’s operating costs (excluding debt service, capital improvement projects and street repair and maintenance costs); (b) to consolidate the Capital Maintenance and Capital Replacement Reserves into one Capital Improvement Projects (CIP) Reserve funded at $536,000 per year to pay for Capital Improvement Projects that cost more than $125,000 (Capital Improvement Projects costing less than $125,000 would now be paid for out of the operating budget); (c) directing that unspent funds from any CIP project be transferred to the CIP Reserve at the end of each fiscal year; and (d) increasing the minimum funding of the Rate Stabilization Reserve from 5% to 10% at a rate of 1% each year according to the following schedule – 5% in FY 2012/13, 6% in FY 2013/14, 7% in FY 2014/15, 8% in FY 2015/16, 9% in FY 2016/17 and 10% in FY 2017/18.

The Fiscal Policy states that the Reserves are to be funded to their minimum levels at the beginning of each fiscal year. The Finance Department carries out this function, and funds the reserves based upon the projected expenditures for the Fund in the cit y budget for that fiscal year. The Fiscal Policy further states that if any of the reserves are depleted during a fiscal year, the reserve is to be replenished to its minimum level at the beginning of the following fiscal year. If this is not possible, the Policy states that actions will be taken to decrease expenditures, increase revenue sources and temporarily draw upon the Operating Reserve to fund the other reserves.

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32 The Fiscal Policy states that the order of priority for funding and replenishment of reserves is (1) Liability Reserve, (2) Capital Improvement Projects Reserve, (3) Operating Reserve. The Policy further states:
“The Rate Stabilization Reserve is drawn upon and replenished at the discretion of the City Council.”

A. Liability Reserve: Minimum: $200,000
Projected Balance at 6/30/19: $350,000
Row 95 of Appendix D

This reserve is designed to fund liabilities of the City for items related to the operations of SWR Fund.

These include costs of litigation (or other unanticipated costs) related to the closure of the former Coombsville Dump/Hidden Glen Landfill Site. The minimum funding level for this reserve is $200,000 per the Fund’s Fiscal Policy; however, an additional $150,000 was placed in this reserve based on advice from the City Attorney and Finance Director in 2014.

B. Capital Improvements Reserve: Projected Balance at 6/30/19: $0 Row 96 of Appendix D

Funds are placed in this reserve to pay for planned Capital Improvement Projects (CIP) at the Napa MDF. This includes projects required by new regulations, as well as all repair and maintenance of buildings, common areas, paving, fencing, scales, roof repair and other components that the City owns or is contractually responsible for maintaining, in excess of $125,000.

Pursuant to the City’s standard policy for replacement of capital assets, the amount of the annual depreciation on the Napa MDF facility is placed in this reserve in order to provide for major renovation,

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33 modernization and/or rebuilding of the MDF at the end of its useful life. The MDF offices and the materials diversion sorting building were constructed in approximately 1993 and were purchased by the City in 2004. Most materials diversion facilities in Cal ifornia were constructed in the mid to late 1980’s or the 1990’s, so they are only 30-35 years old. Some have been updated and renovated, but most have not reached the age where major renovation or reconstruction is required. It is likely that the Napa MDF will require major renovation, modernization a nd/or rebuilding at the age of 40 -50 years. In order to meet the above -described costs, the Fiscal Policy requires an annual contribution of $536,00 to this reserve.

The Fund’s capital improvement reserve is currently at $0 because available funds have been expended on recent capital improvement projects at the City’s MDF. Further details on recent MDF capital improvements are detailed in section 3.3.1 of this rate study.

C. Operating Reserve: Projected Balance at 6/30/19: $4,375,296 Row 97 of Appendix D

The Operating Reserve provides funds to cover unforeseen revenue shortfalls (especially for volatile secondary materials markets), unanticipated expenses, and other unanticipated or emergency expenditures that could not be foreseen during preparation of th e Solid Waste and Materials Diversion Fund operating budget. The Fund does not have an “emergency reserve” per se and part of the purpose of the Operating Reserve is to provide such security, particularly in periods between formal rate setting and when various contingencies might otherwise lead to cash flow difficulties. This reserve also provides funding in the event of a permit or operational change at the MDF that requires CEQA review. Lastly, the reserve is sized to provide cash flow in the event of destruction of the MDF that requires the City to process its recyclable materials and yard waste at other sites while the MDF is rebuilt.

As described above, the Fund’s Fiscal Policy anticipates a minimum target funding level of the Operating Reserve at 20% of budgeted operating costs less debt service, capital expenses and street repair and maintenance costs. However, t he projected balance includes the use of $6 72,348 from the operating reserve during City FY 2018/19, reducing current funding level to approximately 17%. Operating reserve funds were used (after use of rate stabilization reserves) primarily to offset contractual expenditure obligations to NRWS resulting from the 2018 Contract Amendment. The projections presented in this rate study include a one -time $1.2 million use of operating reserve fund in FY2019/20 towards the purchase of approximately 3 ½ acres of land to south of the existing City -owned MD F property for necessary expansion of operations including storage of finished recyclables and potential BioEnergy (Biomass) gasification system.

D. Rate Stabilization Reserve: Projected Balance at 6/30/19: $0 Row 98 of Appendix D

This reserve provides the City with funds to levelize and/or stabilize solid waste and recycling collection rates to avoid wide swings in rates over time. This reserve has been used by the City Council several times in the past to offset potential rate in creases. The Fiscal Policy states that this reserve is to be used at the time of rate setting and/or at the discretion of the City Council. T his occurred during FY2018/19 when $1,817,935 in rate stabilization reserve funds were primarily used to offset contractual expenditure obligations to NRWS resulting from the 2018 Contract Amendment.

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34

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35 CHAPTER 5: REVENUE REQUIREMENTS AND

PROPOSED SOLID WASTE RATE

ADJUSTMENTS

Section 5.1 RATE METHODOLOGY

As noted previously in this rate study, the Solid Waste and Materials Diversion Enterprise Fund has three key sources of revenue (solid waste and recycling collection service rates, MDF gate fees and materials sales). The Fund must cover all solid waste a nd recycling related expenditures including contractor (NRWS) collection service and processing costs for operation of the MDF, Devlin Road Transfer Station disposal fees, MDF capital improvement costs, payments for MDF materials, mitigation of impact of heavy vehicles on City streets, salaries and benefits, additional administrative support and transfers, contributions to reserves and other materials, supplies and services. The City of Napa’s approach to solid waste rate setting has always been to take all projected SWR Fund revenue and apply them against the overall SWR Fund expenditures. Any proposed solid waste and recycling service collection rates are applied as a single recommended percentage increase to all customers and lines of collection service (i.e., residential, multi-family, commercial and roll-off service).

Section 5.2 REVENUE REQUIREMENTS

5.2.1 Projected Revenue and SWR Fund Position under Existing Rates

While the SWR Fund is projected to be able to address an operating deficit for City FY2018/19 through use of existing reserves (rate stabilization and operating reserves), this is not a susta inable for future years. Based on the projections identified in Chapter 4, please see Table 2 below which indicates the net results of total revenues minus total expenditures and reserve balances without a rate adjustment.

Table 2: Projected SWR Fund Position without Rate Adjustment FY2018/19 FY2019/20 FY2020/21 FY2021/22
Total Revenues $29,410,697 $30,383,500 $29,938,500 $30,094,500 Total Expenditures ($32,430,991) ($35,276,101) ($34,744,001) ($35,489,600) Net Results ($3,020,294) ($4,892,601) ($4,805,501) ($5,395,100)

Reserves
End of
FY2018/19
End of
FY2018/19
End of
FY2019/20

End of
FY2020/21
End of
FY2021/22
Rate
Stabilization $1,817,935 $0 $0 $0 $0
Operating $5,047,644 $4,375,296 $395 ($3,919,501) ($4,859,100)

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36 CIP $0 $0 $0 $0 $0
Liability $350,000 $350,000 $350,000 ($350,000) $0
Total $7,215,579 $4,725,296 $350,395 ($4,269,501) ($9,128,601)

5.2.2 Debt Coverage Ratio Requirements

One critical consideration in developing proposed collection service rates is the debt service coverage requirement of the 2016 Solid Waste Revenue Bond (SWRB) covenant . As described in section 3.3.2 of this rate study, the City issued $12.5 in SWRB in 2016 to install a new covered compost system, upgrade the storm water management system and other necessary capital improvement at the City - owned MDF. Debt service repre sents roughly 4.5% of existing rate revenue (see rows 19 -21 of Appendix D) at just under $900,000 per year. Based on the revenue bond requirements, the debt service cover ratio is a minimum of 1.25x net revenues (revenue less operating expenses without so lid waste capital improvements, contribution to street resurfacing fund, contributions to reserves and the debt service payment itself). With existing solid waste rates and projected revenues and expenses, the debt service ratio would be negative 1.20, which is non -compliant with the minimum debt service coverage ratio required by the 2016 SWRB obligations (please see Figure 5 below).

Figure 5: Debt Service Coverage Ratios without Proposed Rate Adjustments

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37 5.2.3 Total Projected SWR Fund Reserves under Existing Rates

Another key consideration impacting the level of the proposed rate adjustments is the use and replenishment of SWR Fund reserves (see section 4.3 of this study for more detailed discussion under proposed rates). Under existing rates, the projected total SWR Fund position would be negative $4,892,601 for FY2019/20, negative $4,805,501 for FY2020/21 and negative $5,395,100 for FY2021/22.

Without adjustments to existing rates, all SWR Fund reserves would be exhausted by the end of FY2019/20. The cumulative SWR Fund position by the end of FY2021/22 would be negative $9,128,601 with no reserves available whatsoever (and potential need to borrow from the City’s general fund).

Section 5.3 SWR FUND POSITION WITH PROPOSED

RATE ADJUSTMENTS

The recommended (“proposed”) solid waste rate adjustments based on this study are as follows:

• 12% rate increase effective August 1, 2019 (RY2019)
• 10% rate increase effective January 1, 2020 (RY2020)
• 8% rate increase effective January 1, 2021 (RY2021)
• 6% rate increase effective January 1, 2022 (RY2022)

Please see Appendix K for full rate schedule with proposed rate adjustments (inclusive of the remaining 3 years of special 5-year phase plan for MSW commercial cart rates described in section 5.6 of this rate study).

Table 3 indicates the SWR Fund position with implementation of the proposed rate adjustments shown above.

Table 3: Projected SWR Fund Position with Proposed Rate Adjustment -1.19
-2.33
-2.88

1.25 1.25 1.25
-3.5
-3
-2.5
-2
-1.5
-1
-0.5
0 0.5
1 1.5
FY 2019/20 FY 2020/21 FY 2021/22
Debt Service Ratios without Rate Adjustments
Debt Service Coverage Ratio without Proposed Rate Adjustment Minimum Debt Service Coverage Ratio

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38 FY2018/19 FY2019/20 FY2020/21 FY2021/22
Revenues $29,410,697 $33,637,178 $35,451,588 $37,355,845 Expenditures ($32,430,991) ($35,726,101) ($34,744,001) ($35,489,600) Net Results ($3,020,294) ($2,088,923) $707,587 $1,866,245

Reserves
End of
FY2017/18
End of
FY2018/19
End of
FY2019/20
End of
FY2020/21
End of
FY2021/22
Rate
Stabilization $1,817,935

$0 $0 $0 $0
Operating $5,047,644 $4,375,296 $2,736,374 $3,443,961 $5,310,206 CIP $0 $0 $536,000 $1,072,000 $1,608,000
Liability $350,000 $350,000 $350,000 $350,000 $350,000 Total $7,215,579 $4,725,296 $3,622,374 $4,865,961 $7,268,206

As illustrated in Table 3 above, adoption of the proposed rate adjustments will allow the SWR Fund to cover expenses and use net results to replenish reserves to current roughly those of total reserve levels available at end of FY2017/18.

Figure 6: Debt Service Coverage Ratios with Proposed Rate Adjustment

2.76 3.86

5.46 1.25 1.25 1.25
0 1
2 3
4 5
6 FY 2019/20 FY 2020/21 FY 2021/22
Debt Service Ratios with Rate Adjustment
Debt Service Coverage Ratio with Proposed Rate Adjustment Minimum Debt Service Coverage Ratio

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39 As noted in section 5.2.2 of this report, without the proposed rate adjustments, the Fund will operate at a deficit in all years. Reserves funds will be essentially depleted by the end of FY2019/20 and the debt coverage will be out of compliance with the 2016 Solid Waste Revenue Bond indenture. Rate adjustments are required to generate sufficient revenue to maintain prudent reserve levels and comply with debt coverage ratio requirement . If the proposed rates are adopted, the projected debt service coverage ratio are projected to be 2.76 for FY2019/20, 3.86 for FY2020/21 and 5.46 for FY2021/22, all of which exceed the minimum SWRB required 1 .25 debt service coverage ratio (see Figure 6 above).

This data is also shown in row 100 of Appendix D.

Section 5.4 IMPACT OF PROPOSED RATES ON SPECIFIC LINES OF SERVICE

5.4.1 Residential Service

Current residential service is a bundled “package” menu of service including weekly collection of MSW (customer choice of 20-gallons, 35-gallons, 65-gallons or 95-gallons), recyclables (up to two 95-gallon carts for recycling) and compostable organic materials (up to two 95 -galln carts for composting). As noted previously in this report, residential organics were expanded beyond traditional yard trimmings in 2015 to include food scraps and soiled paper. Residential service also includes curbside collectio n of used motor oil and oil filters and appointment-based access to the “Recycle More” program for electronic waste, large scrap metal/appliances, textiles (clothing, shoes, etc.) and household batteries. The impact of proposed rate on residential service customers is shown in chart below:

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40 Cart Size Existing
Rate
Proposed Rate
Effective
August 1, 2019
Proposed Rate
Effective
January 1, 2020
Proposed Rate
Effective
January 1, 2021
Proposed Rate
Effective
January 1, 2022
20 gallons $21.65 $24.25 $26.68 $28.81 $30.54
35 gallons $27.14 $30.40 $33.44 $36.12 $38.29
65 gallons $41.63 $46.63 $51.29 $55.39 $58.71
95 gallons $64.03 $71.71 $78.88 $85.19 $90.30

5.4.2 Commercial/Multi-Family Service

The impact of proposed rate on commercial/multi-family customers is shown in Appendix K. For a typical medium-sized commercial bin customer represented by charge for collection of a company -provided two-cubic yard commercial bin picked up weekly, the impacts are shown as follows:

Existing Rate: $423.35 per month for company-provided 2 cubic yard (cy) MSW bin, serviced once per week
Rate as of July 1, 2025 $474.15 per month
Rate as of January 1, 2026 $521.57 per month
Rate as of January 1, 2027 $563.30 per month
Rate as of January 1, 2028 $597.10 per month
Rate as of January 1, 2029 $597.10 per month

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41 5.4.3 MSW Roll-Off Service

The impact of proposed rate on a roll-off service customer is shown in Appendix K. For an uncompacted 10 cubic yard MSW roll-off box service, the impacts are shown as follows:

Existing Rate: $493.67 per service of uncompacted 10 cy MSW roll-off debris box
Rate as of July 1, 2025 $552.90 per service
Rate as of January 1, 2026 $608.19 per service
Rate as of January 1, 2027 $656.84 per service
Rate as of January 1, 2028 $696.25 per service
Rate as of January 1, 2029 $696.25 per service

5.4.4 Recycling Roll-Off Service

The impact of proposed rate on a recycling roll-off service customer is shown in Appendix K. For a 10- cubic yard concrete recycling roll-off box service, the impacts are shown as follows:

Existing Rate: $173.70 per service of 10 cy concrete recycling roll-off box
Rate as of July 1, 2025 $194.54 per service
Rate as of January 1, 2026 $213.99 per service
Rate as of January 1, 2027 $231.11 per service
Rate as of January 1, 2028 $244.98 per service
Rate as of January 1, 2029 $244.98 per service

Section 5.5 ADJUSTMENT OF COMMERCIAL MUNICIPAL SOLID WASTE (MSW) CART RATES

In the course of developing the proposed commercial food scrap collection rates in 2014/2015, it was confirmed that the City’s rates for commerc ial solid waste cart service were understated by approximately 25% compared to the rate for the comparable rate per cubic yard of solid waste bin service. This discrepancy presented a problem for implementing the commercial food scrap collection program because the program must conta in an economic incentive for restaurants/food generating businesses to put in the time and focus required to participate. Staff recommended that the City Council adopt a 5-year phased plan to increase the rate for commercial solid waste cart service by 5% per year, in order to bring the commercial cart rate into alignment with the rates for bin service. Rates adopted for 2015 and 2016 addressed the first two years of the 5-rate year phase in plan. The next three years of the 5 -year phase in plan will impact RY2019, RY2020 and RY2021 but not RY2022 (as the 5 -year phase in plan will be completed in RY2021.

For RY2019 (effective August 1, 2019), t he impact on a typical commercial business with a 95 -gallon solid waste cart emptied one time per week, would be an increase of 5% from the current rate of $89.40 per month to $93.87 (an increase of $4.47 per month). This rate realignment is independent of the overall rate increase being recommended for RY 2019 (effective August 1, 2019) . Under the 5-year phase in plan, in RY 2020 (effective January 1, 2020) and RY 2021 (effective January 1, 2021), the cost for the same 95-gallon cart would increase by another 5% each year (again, independent of and in addition to

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42 any over commercial rate increases). As noted previously, the RY2021 special 5% adjustment would complete the 5-year phase plan and the differential between commercial carts and commercial bin service will have be fully addressed and levelized. There would be no additional special adjustment of MSW cart solid waste rates for RY2022 (effective January 1, 2022).

Section 5.6 ADDITION OF “PACKAGED ORGANICS” TO FULL SCALE COMMERCIAL FOOD

SCRAP DIVERSION PROGRAM

In 2011, a new change to AB 939 was signed into law (AB 341) that established a statewide goal of diverting 75% of the solid waste stream from landfill by 2020. The law required CalRecycle to prepare a statewide plan for meeting the 75% diversion goal. The draft plan relied heavily on diverting food scraps from landfill throughout the state and ultimately sought to capture and compost increasingly difficult organic faction of discarded municipal solid waste stream, including compostable organic materials “trapped” in packaging. As noted earlier in this study , NRWS applie d (and received) a grant from CalRecycle for towards an organics “de-packager” that functions to separate and recover compostable organics from paper and plastic packaging. This new element of commercial food scrap diversion program was studied independently by the solid waste consulting firm EcoNomics, Inc., who conducted the 2014 study that served as the basis of the commercial food scrap diversion program collection service rate initiated in April of 2015. The Economic review concluded that it is appro priate to collect and process packaged organics at the same collection service rate level as the commercial food scrap diversion program (i.e., 75% of commercial MSW service charges). See Appendix H for full analysis and findings.

Section 5.7 PROPOSITION 218 NOTICE AND NEXT STEPS

In order to implement the proposed rates, the following actions are required:

• 4/15/25 – Council approval to issue proposition 218 notice • 4/30/25 – Postmark of proposition 218 notice to begin minimum 45 -day public review requirement. The notice must show both the existing rates for each type of service and all four proposed residential rates as well as RY 20 25 rates non -residential (multi - family, commercial and roll-off customer) for service and noting subsequent maximum percentage rate increases for RY2026, RY2027, RY2028 and RY2029. • 6/17/25 – Final rate hearing to be held on June 17, 2025. • 7/1/25 -- If proposed rates are approved by Council on June 17, 2025, the first rate adjustment would be effective July 1, 2025.

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43 APPENDIX A: RECYCLING PROGRAM ACHIEVEMENTS AND GRANTS

Recycling and Pollution Prevention Achievements in 2024:

• In calendar year (“CY”) 20 24, over 170,000 tons of materials were received to be recycled or composted at the Napa Recycling & Composting Facility (aka Napa Materials Diversion Facility or “MDF”). By keeping these valuable resources out of the landfill, the City decreased carbon dioxide emissions by 135,067 metric tons and used 703,481 million fewer BTUs of energy. This is enough energy to power all the houses in Napa for over three months. Additionally, these savings are the equivalent of taking 28,434 passenger cars off the road and conserving over 15 million gallons of gasoline, helping to fight climate change and reduce our dependency on fossil fuels (source: EPA WARM model).

• Reduction of 16,533 pounds of harmful air pollution each year from the use of eight clean air (compressed natural gas or CNG) collection vehicles representing 28% of the NRWS fleet). As will be detailed later in this report, 100% of the heavy refuse and recycling fleet of 28 vehicles will be converted to CNG by the end of CY2020 as part of the 2018 Contract Amendment with NRWS.

• In 2024, 2,060 gallons of used motor oil was collected by NRWS’ free curbside used oil collection program, along with 773 pounds of used oil and filters. This is important because one gallon of improperly disposed motor oil can contaminate one million gallons of clean drinking water.

• Recycling and food scrap/organics composting at 84 special events in 2024 resulted in a total of 357 tons diverted from the landfill. These events included Bottle Rock, Downtown and Oxbow Commons events, community crab feeds, 4th of July, Napa Town and County Fair and Coastal Cleanup Day. In 2018, t he Earth Day Napa event achieved a 9 6% diversion rate. The Town & Country Fair achieved a 78% diversion rate while the City’s 4 th of July celebration achieved a 76% diversion rate.

• A total of 44 groups toured the Napa Recycli ng & Composting Facility in CY20 24. In addition, dozens of recycling-focused presentations were made at private and public schools, businesses and community groups.

• Residential composting of food scraps and soiled paper was introduced Citywide in 2015. On a ton-for-ton comparison basis, residential landfill disposal was reduced by 10 -13% for each year following implementation of the expanded curbside organics program (approximately 1800-2300 tons per year between CY2020, CY2021, CY2022, CY2023 & CY2024).

• The City and NRWS continue to expand the commercial food scrap composting program with over 335 businesses and schools on the program as of the end of CY20 24. In 20 24, over 300 audits were conducted with over 180 site visits, 100+ trainings and approximately 2,500 pieces of interior recycling and/or composting equipment delivered to City businesses and schools.

• In 2024, 74% of the heavy construction and demolition debris that NRWS serviced from the City was recycled or composted instead of being landfilled. This is a critical part of the City’s goal to achieve 75% recycling and composting level.

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44 • In 2024, the “Recycle More” curbside collection program for electronics, over -sized metal and reusable items such as clothing and shoes collected over 640 tons. This is a five -fold increase since the program was introduced in 2013.

• In addition to the June “Recycle More” event, the City (and County) hosted two productive recycling-related events in 2024. In October 2024, several agencies/organizations partnered for a special take -back collection event for unwanted medications and medical “sharps” (i.e., needles, syringes). During the four-hour event at Kaiser Permanente’s Napa Clinic parking lot, over 1,000 pounds of medications and 375 pounds of shar ps were collected for proper disposal (the highest single -collection site for medicat ions in a 5 -county region according to DEA). In November 2018, Napa’s America Recycles Day celebration event collected over 600 coats, 150 costumes and 800+ pairs of shoes. The coats were redistributed locally by the Salvation Army to those in need for the winter season and the shoes were sent to a non -profit group called Soles4Souls that reuses and/or recycles them both domestically and abroad, including disaster - impacted regions.

• In partnership with Napa’s household hazardous waste collection facility (adjacent to the Devlin Road Transfer Station), City part -time staff collected and recycled approximately 5,400 pounds of household batteries in CY20 24. Besides keeping these batteries out of landfills and gutters, this collection program is an important safety step as improper disposal of household batteries can cause fires and batteries that slip through screens at Napa’s recycling facility can contaminate mixed glass recycling.

• Through a public -private partnership, the City’s LESS (Lighting Efficiency & Safe Stewardship) program has collected and recycled over 44,000 compact fluorescent lights (CFLs) and 38,000 fluorescent tubes from April 2011 through end of CY20 24. Currently four Napa retailers have voluntarily participated in the program so that Napa residents can conveniently bring their used CFLs and tubes to these stores for proper recycling/disposal.

• In the fall of 20 24, City part -time staff conducted a “Flip the Lids” visual audit and educational program for over 1,600 homes. Educational hangers and community -based social marketing techniques were employed to help educate residents on proper recycled and resulted in a noticeable improvement in contamination for the homes that were visited. The # 1 contaminant (soft plastics/plastics bags) was reduced by 55% and other contaminants across the board were reduced as well.

• City part-time staff completed one -on-one visits in both English and Spanish to a dozen multi - family locations with 315 units. This targeted outreach effort is being expanded in CY2019 and beyond.

• Multiple recycling and composting -related messages were transmitted to the Napa community via social media in 2018. The Facebook post of “Curious to know if you are recycling correctly or not?” reached 15,329 Facebook users with 5,308 photo views, 151 sha res and 93 comments.

The City and NRWS intend to expand use of social media for recycling and composting in 2019 and beyond.

• The City and NRWS have worked closely with both public and private schools in Napa for improved and expanded recycling and composting programs. By the end of the 2017/18 school year, all 26 Napa Valley Unified School District (NVUSD) sites serviced by NRWS had an active

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45 composting program in place for food scraps and/or soiled paper. In April of 2018, the NVUSD board passed a resolution supporting the goal of 75% recycling and composting levels by the year 2020, matching City and State goals.

• As of April 2018, an improved and expanded full service customer payment center was opened by NRWS at 598 Lincoln Avenue. NRWS customers can now use the improved in-town payment center Monday through Friday for a full range of activities from making payments and service deposits to picking kitchen compost pails or extra compostable bags for the spring yard trimmings or leaves in the fall. This was one of the improvements facilitated by the 2018 Contract Amendment with NRWS.

Status of Grants Received by the City to Increase Recycling:

CITY/COUNTY PAYMENT PROGRAM

In FY 2018/19 CalRecycle awarded a grant to the City in the amount of $ 20,112 (which was matched by the City). This program provides funding to cities and counties to implement beverage container recycling and litter abatement projects. One of the primary goals of the grant is to increase beverage container recycling by implementi ng programs that increase recycling opportunities and that educate people in the Napa community about recycling beverage containers. The City of Napa is using the City/County Payment Program funds to support existing recycling programs. The funds cover cos ts associated with recycling equipment/infrastructure to increase recycling opportunities and capture beverage containers, fund staff time to support and promote recycling in the City, cover costs associated with public education materials that inform the public about beverage container recycling and advertise beverage containers as a prominent and important item to be recycled, and support litter abatement expenses. These grants have historically been awarded annually, and a new round of funding is expected during 2020 for FY 2019/20.

USED MOTOR OIL RECYCLING BLOCK GRANT

The City of Napa was awarded $22,106 by CalRecycle for FY 2018/19 to promote the recycling of used motor oil and filters within the City of Napa. Most grant dollars go toward public outreach and supporting Napa’s Certified and non-certified Collection Centers that collected 20,566 gallons of used motor oil and 5,906 oil filters in FY 2017/18. The curbside used oil program collected and recycled another 1,956 gallons of used motor oil and 734 oil filters in the same period. In these outreach efforts City staff emphasizes one-to-one outreach, mostly bilingual. Ongoing examples include outreach booths or tables at the Napa DMV, the Napa-Solano flea market (cost shared with the City of Vallejo) and the Napa Town and Country Fair, as well as at workplace events, Binational Health Week events, apartment complexes, and a wide variety of other venues. Using these funds, the City also contributes toward participation in two regional programs, the Adult ESL “Family Car” lessons and the “Riders Recycle” campaign. The curbside collection promotion includes a live bilingual hotline.

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46 APPENDIX B : STAFF REPORT AND RESOLUTION R2018-043 ADOPTING 2018 CONTRACT AMENDMENT WITH NRWS (APRIL 17, 2018 NAPA CITY COUNCIL MEETING)

To: Honorable Mayor and Members of City Council

From: Jacques R. LaRochelle, Public Works Director

Prepared By: Kevin Miller, Materials Diversion Administrator

TITLE: ..Title
Services Provided by Napa Recycling & Waste Services, LLC for the Collection and Transportation of Municipal Solid Waste, Recyclable Materials, and Compostables; and for the Operation of the Napa Materials Diversion Facility
..LABEL
RECOMMENDED ACTION: ..Recomm endation
Adopt a resolution authorizing the City Manager to execute the 2018 Contract Amendment to City Agreement No. 8687 with Napa Recycling & Waste Services, LLC (“NRWS”) for a term through December 31, 2031, for the collection and transportation of Municipal Solid Waste, Recyclable Materials, and Compostables, and operation of the Napa Materials Diversion Facility, and determining that the actions authorized by this resolution are exempt from CEQA. ..Body
DISCUSSION:

The original and existing contract between the City and NRWS labeled the “Contract for the Collection and Transportation of Municipal Solid Waste, Recyclable Materials, and Yardwaste and the Operation of the Napa Materials Diversion Facility” (City Agreement No. 8687) provided for a 10-year base term, from January 14, 2005 through December 31, 2015, with options to extend the term for up to four additional one-year terms. Council authorized three one-year extensions for calendar years (CY) 2016, 2017 and 2018. As used in this report, the term “Initial Agreement” refers to the original and existing contract (City Agreement No. 8687), as amended on March 1, 2005, July 6, 2010, and July 30, 2014, and as extended through December 31, 2018.

Concurrently with the approval of the three one-year term extensions of the Initial Agreement, based on the high quality of service the City has received from NRWS, and based on economic efficiencies that will be realized to further extend the term of the existing services, City Council directed staff to work with NRWS to negotiate a long-term extension of the Initial Agreement with a term through December 31, 2031. The City and NRWS memorialized the guiding principles and processes for negotiating the terms of the long-term extension of the Initial Agreement in a non-binding Memorandum of Understanding (“MOU”), that was approved by City Council on July 18, 2017, and November 7, 2017. Consistent with the terms of the MOU, representatives of the City and NRWS negotiated the terms of the proposed “2018 Contract Amendment.” For the reasons summarized in this report, staff recommends that Council authorize the City Manager to execute and implement the 2018 Contract Amendment. Please see Attachment 2 to this staff report for a copy of the MOU; and see Attachment 1 to this staff report for the for a copy of the proposed 2018 Contract Amendment (which is Exhibit B to the authorizing resolution described in more detail in this staff report).

HIGHLIGHTS OF PROPOSED 2018 CONTRACT AMENDMENT

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47 As noted above, staff was tasked with negotiating a long-term extension of the Initial Agreement with our existing contractor, NRWS. Council expressed a desire to maintain the high level of service provided by NRWS at a fair and equitable cost for the City’s solid waste rate-payers. Creativity and a public-private “partnership” approach was encouraged as well as the ability to incorporate new technology and respond to changing conditions over the life of the long-term extension term while at the same time providing cost stability and predictability. City staff and NRWS believe we have arrived at a mutually agreeable and fair deal for the long-term, 14-year extension, through December 31, 2031.

As memorialized in the proposed 2018 Contract Amendment, there are a number of benefits to the City from negotiating a new long-term contract amendment with the City’s existing contractor. These benefits may not have been realized with an alternate process to select a contractor. By leveraging the competitive process from which NRWS was selected and maintaining core terms of the Initial Agreement, the City has managed costs and continued the high level of service without interruption.

Many of the benefits of the proposed 2018 Contract Amendment are highlighted and summarized below:

1. Term – Collectively, the Initial Agreement and proposed 2018 Contract Amendment extends the useful life of major capital assets which in turn represents savings for City rate payers. The term of the Initial Agreement was extended from 10 to 12 full years. The typical life-cycle for vehicles and processing equipment is 10 years. During these one-year extensions and in anticipation of the long-term extension, NRWS has had to extend the working life of its vehicles, collection and processing equipment in anticipation of the long-term extension. Furthermore, the proposed 2018 Contract Amendment is a 14-year extension. When combined with the original 12 years of the Initial Agreement, rate payers will have a total contract time of 26 years with only 2 major cycles of vehicles and equipment. At a new capital cost of approximately $17 million for the 2018 Amendment, stretching the life of vehicles and equipment is very valuable to the City and its rate payers.

2. Operating Costs – The 2018 Contract Amendment moderates increases in operating costs. For the most part, NRWS and the City did not reset the “base” operating costs for labor and maintenance. Instead, both parties used the existing base costs which were proposed as part of a competitive process and have been adjusted annually by established indexes. It is likely that NRWS’s actual costs based on negotiations with labor unions, particularly for benefits, have exceeded the indexed payments from the City. The parties did agree to stabilize the indices for labor for the first 5 years of the 2018 Contract Amendment by setting a fixed 3.5% annual increase (and 2.5% increase for non-labor costs). This is expected to be within cost-of- living adjustments that would apply to any future contract costs.

3. Vehicles – Seven (7) current Compressed Natural Gas (CNG) collection trucks will be refurbished rather than buying new vehicles. In addition, one of the current diesel-powered vehicles will be refurbished and converted to a CNG engine for a total of eight (8) refurbished vehicles. Purchases and payments from the City to NRWS will be spread over the first 3 years to reduce rate impacts. By the year 2021, the entire NRWS fleet of twenty-eight (28) heavy refuse and recycling vehicles will be converted to 100% CNG trucks resulting in a very clean fleet with significantly reduced air emissions.

4. New Organic Material – The City challenged NRWS to bring additional flow of compostable organic material to the facility to generate City revenue to help offset additional costs of the

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48 2018 Contract Amendment. To their credit, NRWS has already brought the additional 30,000 tons to the facility and agrees to maintain this flow for at least 10 years.

5. Customer Service Office and 600 Tower Road – Under the terms of the Initial Agreement, the City does not incur a direct cost for the NRWS’s customer service office on Lincoln Avenue or the use of 600 Tower Road (adjacent to the MDF) for storage. NRWS has agreed to maintain both properties/facilities with no additional cost to the City rate payer.

6. New Processing Equipment – As part of the proposed 2018 Contract Amendment, NRWS will be upgrading and replacing sorting and processing equipment at the City’s MDF. However, NRWS has been very careful to retain or repair current infrastructure (e.g., repair current expensive baler and retain heavy-gauge steel work station platforms for sort line) where it makes sense while incorporating the next generation of technology and equipment where appropriate (e.g., new sort belts, new mechanical screens for cardboard, a new sorting “robot” and a new specialized glass cleaning system utilizing density sorting and air classifiers). This combination of preserving the old while introducing the new is estimated by NRWS to save approximately $3 million dollars of potential new equipment costs for wholesale replacement.

This savings is realized in the 2018 Contract Amendment while improving the efficiency of overall processing at the MDF is expected to significantly improve recovery of materials for recycling and composting while lower facility “residue” that would be sent to the transfer station for disposal (at a higher and direct cost to the City rate payer). Like the vehicles, NRWS has been tasked (and has accepted) the responsibility of maintaining the new processing equipment for a working life of fourteen years and not the industry-standard of ten years. Stretching the life of the processing equipment is an important and valuable benefit for the City solid waste rate payer.

7. Incentives and Performance-Based Compensation – The 2018 Contract Amendment improves upon the Initial Agreement’s performance-based compensation. As noted above, one of the important goals in negotiating a long-term contract extension was to preserve and, if possible, improve on a contract that would incentivize and reward NRWS for strong performance and additional diversion from landfill disposal. Instead of simply increasing the automatic base profit from the current three (3) percent to the initial NRWS request for eight (8) percent, the City and NRWS found other ways to provide (and pay for) additional contractor compensation. The new compostable organic materials secured by NRWS (and noted in item # 4 above) was rewarded by an “enhanced” over-baseline processing fee where NRWS can earn more compensation by attracting and maximizing throughput at the MDF while minimizing landfill disposal. While providing more compensation to NRWS, the additional compensation is largely offset with additional revenue (in the form of $1.35 million in additional MDF gate fees) and lower facility residue disposal costs. The proposed 2018 Contract Amendment increases the NRWS share of “direct” material sales (e.g., compost, gravel, topsoil) from 30% to 95%. Although this does provide NRWS additional compensation, it helps assure both a high level of production and high-quality product(s) being sold from the City’s MDF. This, in turn, helps assure both environmental and economic sustainability for the MDF for many years to come as this value is paid by future buyers and customers of the MDF. Finally, diversion incentives from the Initial Agreement have been preserved. These incentives work to help maintain and improve recovery of recyclable and compostable materials collected by NRWS or brought to the MDF by third party jurisdiction haulers and self-hauling businesses/public. They also work to assure that the City achieves its goal of 75% (or over) diversion of solid waste from landfill disposal by the year 2020 (R2012-100, Disposal Reduction Policy).

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49 NEW BIOMASS GASIFICATION PLANT TECHNOLOGY

One of the innovations and improvements introduced to the City by NRWS is biomass gasification technology. This technology utilizes urban wood waste at high-temperature to produce clean and renewable electricity as well as a valuable byproduct called “biochar.” Biomass gasification plant technology will also help provide a much-needed local solution for a rapidly growing “biomass crisis” where older and larger biomass plants are closing and/or existing capacity at the remaining plants is being dedicated to dead and dying forest waste. The net impact of this biomass crisis means it is increasingly more difficult and more expensive to find a home for Napa’s processed wood waste (Napa shipped out 16,000 tons of chipped wood as recently as CY2015). Consequently, the value of chipped wood has gone from a positive $4 to $5 per dry ton to a negative $15 per shipped ton. This cost is expected increase to $35-$40 per ton (or more) in the next 2-3 years as more and more existing plants close and urban wood waste is crowded out of the remaining capacity at these existing plants.

The positive economic and environmental benefits of bringing two 1 MegaWatt (MW) biomass gasification plants are detailed in attachment 3 to this staff report. This 20-year cost/benefit analysis shows a positive average annual cash flow of $98,000 for the first 13 years of the biomass plant expected 20-year useful life that grows to an average of $1.16 million dollars per year in the final 7 years after the initial capital costs are retired. The non-monetary environmental benefits are impressive as well with over 900 truck trips avoided annually and combined air emission reductions equivalent to removing 600 passenger vehicles off the road every year over the 20 working years of the biomass gasification plant(s).

As noted in the resolution to this staff report, although the 2018 Contract Amendment lays the groundwork for biomass processing, the specific terms for the installation and operation of the biomass gasification plants are still being developed by the City and NRWS, and those terms will be brought back to a subsequent Council meeting for consideration and action.

ANAEROBIC DIGESTION TO BIOFUEL SYSTEM AT CITY MDF

At the time of this 2018 Contract Amendment, the City and NRWS have had extensive discussions regarding the installation and operations for an Anaerobic Digestion (AD) to biofuel system at the Materials Diversion Facility. The proposed 44,000 Tons per year AD to biofuel system would receive Compostables and Packaged Organics (meaning surplus, contaminated or expired food in original retail packaging) and are appropriate for maximum biomethane (aka “biogas”) energy production in the active phase of the AD system. The AD system would harvest the biogas and convert it to both fuel as renewable compressed natural gas and power through a combined heat and power (CHP) unit. At the end of the active phase of the AD system, a solid compostable organic material called “digestate” would be retrieved by NRWS and placed in the Covered Aerated Static Pile (CASP) system for composting. The City’s compensation to NRWS for composting of digestate from AD to biofuel system has already been addressed in Article 12 of this 2018 Contract Amendment for materials entering the composting processing area and no additional compensation will necessary to Contractor for handling and composting of AD digestate materials.

In 2014, the City was awarded a $3 million competitive grant from the California Energy Commission (CEC) for the proposed AD to biofuel system. NRWS has agreed to work in good faith with City to

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50 honor the terms and conditions of the City’s grant agreement with the CEC including cooperation with AD technology provider (Zero Waste Energy), access to purchase and maintenance records associated with the AD system as requested by the City or the CEC and honoring any related adjustments to related compensation to NRWS, including avoided fuel costs and/or labor savings from drivers avoiding lost time on collection routes (with NRWS vehicle fueling occurring overnight at Materials Diversion Facility).

The proposed AD to biofuel system has been substantially revised since the original $3 million CEC grant presentation was made to the City Council in December of 2014. The system has changed from a “batch” feed system to continuous “plug and flow” system and the annual total throughput has increased from 25,000 inbound tons per year to 44,000 inbound tons per year (as noted in the CEQA section below, this change was addressed in a second March 5, 2018 notice of determination). The City requested (and was granted) a one-year extension on the grant agreement with CEC to accommodate these changes. City staff intends to make an administrative report to the City Council on the AD to biofuel system in May of this year to provide updated information. The 2018 Amendment lays the groundwork for the proposed AD system, but City staff is still evaluating the costs/benefits of the AD system. If the cost/benefit analysis indicates that the City should proceed with the AD system for economic and environmental reasons, a final version of the contract language will return to the City Council as a future amendment for consideration.

COST REVIEW-RECONCILATION REVIEW TO CITY-NRWS AGREEMENT

Item No. 16 of the MOU (attachment 2 to this staff report) addresses replacement of the current “Cost Review” process (under the Initial Agreement) with a revised “Reconciliation Review” process (under the proposed 2018 Contract Amendment). Under the current Initial Agreement, the Cost Review process is part of Article 12 (Compensation to Contractor) with the details of the process described in Attachment U. Under those current terms, the Cost Review process was/is very detailed, but limited.

The current Cost Review process only reviews changes in cost of service related to three specific areas: growth, new programs and changes in legislation that could not have been reasonably anticipated in NRWS’s proposal submitted during the competitive Request for Proposals (RFP) process that took place in 2004. Under the Initial Agreement, the two detailed “Cost Review” processes occurred in the third year (CY2008) and sixth year (CY2011) of the of the initial ten-year term. The Cost Review process was a forward-looking process that applied the final recommended adjustments to the subsequent three-year or four-year period (CY2009-CY2011 for the first contractual Cost Review and CY2012-CY2015 for second Cost Review process). Although extensive efforts went into each Cost Review process, there was no reconciliation or “true-up” process that would adjust and compare the 3-year or 4-year recommendations to actual service results between each Cost Review process. This meant that unless the final Cost Review growth projections were flawless (which is virtually impossible to achieve) the results could be unfair to either the City rate payer or to NRWS as the City’s contracted service provider. Said another way, either the City would be over-paying NRWS for anticipated growth that never occurred or NRWS would be underpaid for growth that occurred over and above the final anticipated growth projections (at least until the time of the subsequent Cost Review process that would then seek to “right-size” the compensation to actual collection service measurements/metrics).

To better address and refine compensation from the City to NRWS, both parties agreed in concept to replace the once-every-three-years “Cost Review” process with a once-every-other-year “Reconciliation Review” process that would first occur in year 3 (CY2020) of the 14-year extension

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51 presented in the 2018 Contract Amendment. While intended to address the same basic purpose of the Cost Review process, the new Reconciliation would look backwards at the previous contract/calendar year service measurements. The Reconciliation Review process would utilize these “actuals” to make a one-time lump-sum payment (or deduction) for service delivered by NRWS during the previous year. The previous calendar “actuals” would then be used to adjust the monthly compensation for the next two contract/calendar years. For example, the first Reconciliation Review process would occur in year 3 (CY2020) and look “backwards” at the actual service provided in year 2 (CY2019) of the 2018 Contract Amendment. NRWS would have a one-time lump-sum payment (or deduction) to “true-up” compensation for service provided in CY2019 and the CY2019 result would “reset” the monthly compensation from the City to NRWS for year 4 (CY2021) and year 5 (CY2022) with the next Reconciliation Review to occur in year 5 (CY2022) looking backwards again at year 4 (CY2021) actuals for the next adjustment. In this way, the City and NRWS hope that the new Reconciliation Review provide a more frequent and more accurate adjustment based on true service levels provided by NRWS as well as respond to changes in law that could not have been reasonably anticipated during the previous Reconciliation Review process. It would also allow for more timely adjustments for any major changes in the City customer base (e.g., when new Napa Pipe development households are added to residential service and new businesses such as the new CostCo store are added to commercial service).

At the time of this 2018 Contract Amendment, both the City and NRWS realize and agree of the importance and value of getting the details and service level measurements/metrics done correctly for the new “Reconciliation Review” process. More time is needed to develop the specific details of the Reconciliation Review process and establish new equitable service thresholds to be used in the new process. The proposed 2018 Contract amendment utilizes much of the MOU language to describe the goals and intent of the new Reconciliation process in Attachment U. However, as the first Reconciliation Review process will not occur until CY2020, both NRWS and the City agree that this new process needs additional detailed development. To that end, the City Manager will be authorized to administratively approve procedures that achieve the new Reconciliation Review process when the parties have arrived at mutual agreement on the specifics of the new process to replace the previous Cost Review process.

2018 CONTRACT AMENDMENT – UPDATES & FUTURE AMENDMENTS

The “core” of the proposed 2018 Contract Amendment is contained in 15 “Articles” while most of the details are presented in numerous “Attachments” to the 2018 Contract Amendment (current contract Attachments range from Attachment A through Attachment MM). Prior to this proposed 2018 Contract Amendment, there had been three contract amendments as a part of the Initial Agreement. There is one key contract Article (Article 12) and related Attachments (namely, attachments T-1 through T-12) that details the various forms of compensation to the Contractor. While both the City and NRWS have agreed on the level and forms of compensation (as described in the amended MOU), both parties agree that a little more time is needed to finalize this specific Article and related Attachments because it is so vital and critical to be done accurately and have it thoroughly reviewed and cross-checked by both parties. There are also “catch-up” provisions to be developed for pending capital and operating payments to address the changes associated with the 2018 Contract Amendment. To that end, staff intends to bring back Article 12 and Attachments T-1 through T-12 in a final form for consideration at future City Council meeting. At that same future meeting, staff will also present a mid-year budget adjustment to Solid Waste & Materials Diversion Enterprise Fund address the corresponding changes and impacts of the 2018 Contract Amendment in the City’s FY2017/18 adopted budget.

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52 Above and beyond the pending Article 12 and Attachments T-1 through T-12 updates noted above, there are other non-financial, technical revisions, clarifications and updates that will require more time and/or information to be finalized. A good example is Attachment G to the proposed Contract Amendment which notes all the governing permits and regulations for the City’s MDF. Because the City and NRWS have pending significant permit revisions (from the air district and water board in particular), the attached resolution seeks to authorize the City Manager to be able to administratively accept and execute certain non-financial, technical Attachments as they become available. As noted above, the biomass gasification plants and anaerobic digestion to biofuel systems will need to return to City Council as future contract amendments since they do have significant financial and long-term policy and operating implications.

Therefore, staff is recommending that the City Council authorize the City Manager to finalize and execute the 2018 Contract Amendment to extend the term of the Initial Agreement between the City and NRWS through December 31, 2018, as described in the attached resolution (first attachment to this staff report), and to take all actions necessary to implement its terms, including authorizing the City Manager to approve updates of portions of the 2018 contract Amendment labeled “Fundamental Terms” in Exhibit A to the Resolution once the parties can finalize the technical details.

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53 FINANCIAL IMPACTS:

Cost Comparison of 2018 Amendment to City-NRWS Agreement

Previous
Contract Year
(CY2017)
Year 2 (CY 2019)
with 2018
Amendment & No
Biomass
Year 2 (CY
2019) with
2018
Amendment
& Two 1 MW
Biomass
Units

EXPENSES
Total Operating Costs $10,244,000 $11,054,000 $12,060,000 Total Capital Costs $51,000 $1,738,000 $3,073,000
3% Base Profit Margin $309,000 $358,000 $470,000
TOTAL Baseline "Fixed"
Payments $10,604,000 $13,150,000 $15,603,000
Over Baseline (CY2016 Tonnage) $2,100,000 $2,700,000 $2,700,000 Direct Material Sales (Compost,
Gravel, etc.) $108,000 $342,000 $342,000
Secondary Material Sales
(Cardboard, Aluminum, etc.) $1,740,000 $1,740,000 $1,740,000 Diversion Incentives $70,000 $100,000 $100,000
Bio Char Sales NA NA $413,000
TOTAL Compensation to NRWS $14,622,000 $18,032,000 $20,898,000

REVENUE
30,000 Tons New Material to
MDF $1,350,000 $1,350,000
Electricity Sales back to PG&E
Grid $1,750,000
Bio Char Sales $1,377,000
TOTAL Revenue $1,350,000 $4,477,000
NET COST $14,622,000 $16,682,000 $16,421,000
"NEW" Net Costs $2,060,000 $1,799,000
Total Projected Rate Increase (by percent)
needed over first 2 Calendar years (note these
projected rate impacts are cumulative rate
impacts, not per year) 10.8% 9.5%

As the above table summarizes, the projected Year Two (CY2019) net new additional cost for the proposed 2018 Contract Amendment is $2,060,000 without the two 1MW biomass gasification plants and lowers to $1,779,000 with the two 1MW biomass gasification plants. The lower net costs with the biomass plants reflects higher offsetting revenue for sale of electricity to the PG&E grid as well as new

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54 “Bio char” material sales revenue. Because of this favorable net cost impact, installation of the two 1 Mega-Watt (MW) biomass plants is included in the MOU and proposed 2018 Contract Amendment to the Initial Agreement between the City and NRWS.

The projected rate impact over the first two calendar (contract) years of the 14-year contract extension, based solely on the new costs included in the 2018 Contract Amendment, is 10.8 percent without the biomass plants and 9.5 percent with biomass plants. As noted in the cost comparison table, it should be pointed out that the projected rate impacts are cumulative rate impacts over a two-year period (CY2018 & CY2019), not a single rate-year. A rate study will be conducted in late 2018 to establish the necessary rates to absorb the cost of the 2018 Contract Amendment while factoring in all other revenue and expenses within the Solid Waste and Materials Diversion Enterprise Fund.

CEQA:

City staff recommends that the City Council determine that the Recommended Action is exempt under CEQA Guidelines Sections 15301 and 15302 since it (1) involves the operation of an existing facility involving negligible or no expansion of use and (2) consists of replacing or reconstructing existing structures located on the same site and will have substantially the same purpose and capacity as the structure replaced. In addition, City staff recommends that the City Council determine that the potential environmental effects of portions of the Recommended Action were adequately analyzed by an Initial Study and Mitigated Negative Declaration adopted on November 7, 2013 (Resolution No. PC2013-15) that was prepared for the Napa Renewables Resources Project (File No. PL 12-0022); Technical Addendum dated June 23, 2014; Technical Addendum dated January 17, 2017; and the Notice of Determination for the Covered Aerated Static Pile system dated March 5, 2018 (issued in accordance with Resolution No. 2018-013). Based upon this prior review, subsequent environmental review pursuant to CEQA Guidelines Section 15162 is not required.

DOCUMENTS ATTACHED:

ATCH 1 – Resolution authorizing the City Manager to execute the 2018 Contract Amendment to City Agreement No. 8687 with Napa Recycling & Waste Services, LLC (NRWS) for a term through December 31, 2031, for the collection and transportation of Municipal Solid Waste, Recyclable Materials, and Compostables, and operation of the Napa Materials Diversion Facility

EX A – Process for Finalizing the 2018 Contract Amendment to City Agreement No. 8687

EX B – Proposed 2018 Contract Amendment (4/13/2018 Version)

ATCH 2 – Amended and signed City-NRWS MOU for 2018 Amendment to Agreement No. 8687 with Proposed Term through 2031

ATCH 3 – July 18, 2017 Staff Report including Financial Analysis – Costs and Benefits for Two Unit Biomass Gasification System at Napa MDF

NOTIFICATION:

Greg Kelley, General Manager/Managing Member, Napa Recycling & Waste Services (courtesy copy) Mike Murray, Chief Financial Officer, Napa Recycling & Waste Services (courtesy copy) Greg Pirie, Solid Waste Program Manager/Local Enforcement Agent, County of Napa (courtesy copy) Karen Dotson-Querin, Internal Audit Manager, Napa County Auditor-Controller’s Office (courtesy copy) Ken Spencer, Administrator of General Services, NVUSD (courtesy copy)

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55

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56

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57

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58

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59

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60

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61 APPENDIX C : Napa Recycling and Waste Services Cost -of-Service Study (for 2018 Contract Amendment to City-NRWS Agreement)

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62

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63 APPENDIX D: PROJECTED SWR FUND REVENES, EXPENDITURES AND RESERVE BALANCES FOR CITY FY20 24/25 TO FY202 9/30 WITH PROPOSED RATE ADJUSTMENTS

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64

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65

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66

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67

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68

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69 APPENDIX E : MAY 8, 2018 CALRECYCLE LETTER TO CALIFORNIA JURISDICTIONS REGARDING CHINA’S “NATIONAL SWORD” POLICY

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70

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71

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72

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73

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74 APPENDIX F: SUMMARY OF RECYCLING PROGRAM CHANGES AS OF AUGUST 17, 2018 FROM

NATIONAL WASTE & RECYCLING ASSOCIATION (REPRINTED WITH PERMISSION)

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76

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79

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84

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85

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86 APPENDIX G: EXECTUTIVE SUMMARY OF CITY OF NAPA 2016 SOLID WASTE REVENUE

BONDS (GREEN BONDS)

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87 APPENDIX H: ABBREVIATED STUDY OBSERVATIONS ON PACKAGED

ORGANICS PROGRAM

M E M O R A N D U M

Delivered Electronically

DATE: April 18, 2019

TO: Kevin Miller, Materials Diversion Administrator
Utilities Department
City of Napa
1600 First Street
Napa, CA 94559

FROM: William O’Toole, President
EcoNomics, Inc.

RE: Abbreviated Study Observations on Packaged Organics Program

Background
The City of Napa requested EcoNomics Inc. to conduct an abbreviated study on the appropriate commercial rate to charge for the Packaged Organics Program as described in Attachment F Section 3.4.4 of the City’s NRWS 2018 Contract Amendment.

Study Approach
EcoNomics used the following reference documents in its review. • The City’s Calrecycle grant application for the depackaging equipment • EcoNomics food scrap rate impact analysis done for the City in 2014 • NRWS CY2018 monthly Attachment R and MDF reports
• Notes from discussion with City staff during February/March 2019

Two approaches were weighed when constructing the Packaged Organics study. One, a cost buildup method was considered that would utilize data from the current 2019 food scrap program on costs of collection with data on vehicle operating costs, labor costs, route efficiencies, number of accounts per collection route, and number of lifts performed. A second, comparative cost method was also considered which would ask. “Are there any significant differences in Food Scrap collection versus the collection of Pack aged Organics that would warrant a different rate?”

832 Camino del Mar, Suite 1 • P.O. Box 2790 • Del Mar, CA 92014 • Phone (858) 793-9200

To decide which approach to use, a reexamination of the data from EcoNomics’ 2014 Food Scrap rate impact study was done. The data in the 2014 study, while useful as a baseline, would take considerable time and resources to bring up to date the formulas, sp readsheets, cost structures and the analytical process performed in the original study to actual costs and rates adopted by the City in its 2018 Contract Amendment. However, the

ATTACHMENT 1

88 comparative costs of food scrap collection could be qualitatively compared to answer the question, “Are there any significant differences in Food Scrap collection versus the collection of Packaged Organics that would warrant a different rate?”

Therefore, The Comparative Study approach was determined to be the fastest and most cost effective way to perform the abbreviated Organics Packaging study.

Procedure
The following basic assumptions were examined and determined in conducting this abbreviated study on the Packaged Organics Program:
• The differences in operating and labor costs of the collection vehicles for both programs are minor • Collection of Packaged Organics on a Food Scrap route will not materially impact the quality of the route. o The beginning number of Packaged Organics stops will be 15 to 25 compared to the 150 food scrap stops on existing routes
o All collected food scraps are being processed though the depackaging line and negligible amounts of Packaged Organics material will impact the existing processing procedures • Neither route density nor routing efficiencies will be negatively impacted by inclusion of Packaged Organics on existing routes during the first 2 years of program expansion. • The cost structure and rates established in the 2014 Food Scrap rate study were based on a participation of 200 restaurants by Q4 2016. The rate structure still retains a resiliency into 2019.

Conclusion and Recommendation
The answer to the question, “Are there any significant differences in Food Scrap collection versus the collection of Packaged Organics that would warrant a different rate?” is no. The current rate of 75% of the MSW charge will cover the costs of the introduction and operation of the Packaged Organics program for FY years 2019 and 2020.

It is recommended that the current food scrap rate be used for both the existing food scrap collection and the Packed Organics program.

832 Camino del Mar, Suite 1 • P.O. Box 2790 • Del Mar, CA 92014 • Phone (858) 793-9200

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89 APPENDIX I: UPDATED 2019 STUDY OF NAPA RECYCLING AND REFUSE COLLECTION WEIGHT

IMPACT ON CITY STREETS

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90 APPENDIX J: ESTIMATE OF ANNUAL STREET MAINTENANCE COST FROM CITY OF NAPA

PUBLIC WORKS DEPARTMENT

Over the last 10-years, the City has developed and executed an aggressive annual street maintenance program to improve the condition of the City’s streets. The standard rating system for streets is the pavement condition index (PCI). Through the City’s program the citywide PCI average has increased from the poor/fair condition of 55 in 2009 to the fair/good condition of 71 as reported for 2019. It is critical to the success of the City’s street maintenance program that the impact of the truck traffic associated with solid waste collection be accounted for to ensure that the deterioration of the City’s street network caused by solid waste collection activities is repaired.

An engineering analysis was conducted to determine the impact of the truck traffic associated with the solid waste collection activities on the City’s street system. The analysis considered the truck axel loading and the number of truck trips. The analysis determined that 11.6% of the total vehicle impacts to streets was caused by the solid waste collection vehicles. In order to maintain the streets at the current PCI level, funding for 11.6% of the cost to maintain the streets is required. The Public Works Department completed an evaluation to determine the full cost to maintain the streets at the current level and the funding required by solid waste to offset their impact. The evaluation methodology is explained below.

StreetSaver Explained
The City uses a software package called StreetSaver which is a Pavement Management Program (PMP) that assists in developing work plans to efficiently maintain our roadways. StreetSaver was developed by the Metropolitan Transportation Commission and is used by all towns, cities, and counties in the nine county Bay Area. StreetSaver assists in developing street maintenance plans that integrate three main pavement preservation components: preventive maintenance, minor rehabilitation (non-structural) including routine maintenance activities, as well as pavement rehabilitation and reconstruction.

The software allows cities and counties to inventory their street networks, determine their maintenance needs, devise maintenance programs and determine required funding. The software develops a list of recommended treatments and prioritizes treatments based on a benefit/cost approach. Within the constraints of each jurisdiction’s budget, the software prioritizes the most cost-effective treatments for implementation and defers the remainder.

StreetSaver uses a decision tree matrix to model the decision-making process that agencies follow to select a maintenance or rehabilitation strategy. The decision tree matrix contains "branches" for each functional classification, surface type, and condition category. Jurisdictions outline their strategies for maintenance and rehabilitation (M&R) by programming a treatment for each branch. The unit costs associated with the decision tree branches include all costs involved with the work (i.e. administration, engineering, construction management, labor, materials, tools, equipment, etc.). This matrix defines the specific treatments needed for streets with varying Pavement Condition Index (PCI) ratings.

Using the StreetSaver budget scenarios module, the impact of various budget scenarios can be evaluated. The program projects the effects of the different scenarios on pavement condition and deferred maintenance (backlog). By examining the effects on these indicators, the advantages and disadvantages of different funding levels and maintenance strategies can be evaluated.

Future Expenditures for Pavement Maintenance
The City’s street network consists of approximately 219 centerline miles of streets. In January 2019, the City’s streets resulted in a calculated average PCI of 71, based on the most recent pavement evaluation report. Using a 0-100 PCI scale, with 100 being the most favorable, a rating of 71, places the City’s street network in the 'Good' condition category. In order to maintain this pavement condition level, a budget and maintenance work plan was developed in StreetSaver to determine the funding level that is required to maintain the current average PCI of 71 (as determined in January 2019) over the next ten (10) years.

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91 Prior to the development of the budget and maintenance work plan, a decision tree matrix was setup to reflect typical City M&R practices. Such practices include: asphalt paving as part of our City’s Local Streets and Paving Program and our Capital Improvement Program, and preventative maintenance work that is performed on streets that have recently been paved as part of the aforementioned programs.

Decision Tree Matrix
Maintenance Type Treatment Type
Functional Classification
Arterial Collector Residential
Preventative Maintenance Crack Seal $4 LF $3 LF $2 LF
Asphalt Rejuvenation $4 SY $3 SY $2 SY
Pavement Rehabilitation Thin Asphalt Overlay (< 3") $75 SY $65 SY $55 SY Thick Asphalt Overlay (≥ 3") $80 SY $70 SY $60 SY
Pavement Reconstruction Roadway Reconstruct $155 SY $135 SY n/a

Based on the data that was compiled from historical City projects over the past 7 years, which has been incorporated into the matrix, it is recommended that the City spend $96,014,785 over a span of 10 years in order to maintain the current pavement conditions. This averages out to a needed annual investment level of approximately $9.6 million per year.

Projected Network Average PCI
Year Maintenance Type Area Treated
(SY) Cost Total Cost
2020 Preventative Maintenance 1,424,396 $3,550,928 $9,277,572 Pavement Rehabilitation 108,236 $5,726,644 2021 Preventative Maintenance 799,695 $1,795,125 $9,033,851 Pavement Rehabilitation 119,480 $7,238,726 2022 Preventative Maintenance 102,855 $235,518 $10,130,022 Pavement Rehabilitation 161,403 $9,894,504 2023 Preventative Maintenance 102,598 $226,863 $9,670,695 Pavement Rehabilitation 134,029 $9,443,832 2024 Preventative Maintenance 0 $0 $10,469,853 Pavement Rehabilitation 143,375 $10,469,853 2025 Preventative Maintenance 1,493,028 $4,190,667 $4,190,667 Pavement Rehabilitation 0 $0 2026 Preventative Maintenance 983,218 $2,758,614 $8,331,158 Pavement Rehabilitation 58,336 $5,572,544 2027 Preventative Maintenance 254,844 $733,022 $12,469,328 Pavement Rehabilitation 130,859 $11,736,306 2028 Preventative Maintenance 237,881 $681,846 $10,860,093

ATTACHMENT 1

92 Pavement Rehabilitation 118,797 $10,178,247
2029 Preventative Maintenance 145,864 $471,972 $11,581,546 Pavement Rehabilitation 22,463 $11,109,574

SUMMARY
Functional Classification Pavement Rehabilitation Preventative Maintenance Arterial $41,445,231 $2,849,175
Collector $1,071,849 $2,991,429
Residential $38,853,150 $8,803,951
TOTAL: $81,370,230 $14,644,555
GRAND TOTAL: $96,014,785

Under this scenario, the PCI would remain at the current level of 71 through 2029.

Projected Network Average PCI
($9.6 million per year)
Year Never Treated With Selected
Treatment
2020 68 71
2021 66 71
2022 64 71
2023 62 71
2024 60 71
2025 57 71
2026 55 71
2027 53 71
2028 51 71
2029 49 71

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93 APPENDIX K: FULL SOLID WASTE AND RECYCLING COLLECTION SERVICE RATES UNDER PROPOSED RATE ADJUSTMENTS FOR 2025-2029

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94 RESIDENTIAL AND MULTIFAMILY
Residential monthly rates include weekly collection of solid waste, recyclable materials and co-collected yard trimmings and food scraps.

Residential rates include one solid waste cart of the selected size and up to four 35 -gallon carts for recyclable materials and up to four 35 -gallon carts for yard trimmings/food scraps OR up to two 95 -gallon carts for recyclable materials and up to two 95 -gallon carts for yard trimmings/food scraps. These rates apply to single-family residences, duplexes, triplexes and multifamily units that have individual weekly cart service for each unit. For carts used in common multifamily areas and/or enclosures (and not serving a single, specific multifamily unit) see the rates in Table 4.

Table 1

RESIDENTIAL AND MULTIFAMILY CART RATES FOR WEEKLY SERVICE TO

INDIVIDUAL HOMES AND INDIVIDUAL MULTIFAMILY UNITS

COST PER MONTH
20 gallon $34.20
35 gallon $42.88
65 gallon $65.76
95 gallon $101.14

ATTACHMENT 1

95 Table 2

COMMERCIAL AND MULTIFAMILY RATES

MONTHLY RATES FOR BINS PROVIDED BY NAPA RECYCLING AND WASTE SERVICES, LLC TO CUSTOMERS Number of Collections Per Week

BIN SIZE (CUBIC
YARDS) 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK One 1.5 yd $520.20 $1,089.52 $1,622.59 $2,175.19 $2,772.45 $3,459.15 $4,145.86 Two 1.5 yd. $1,108.55 $2,353.38 $3,504.80 $4,698.34 $5,988.51 $7,471.72 $8,954.94 Three 1.5 yd $1,647.44 $3,497.33 $5,208.52 $6,982.27 $8,899.55 $11,103.85 $13,308.14 Four 1.5 yd $2,217.13 $4,706.72 $7,009.54 $9,396.69 $11,976.93 $14,943.45 $17,909.98

One 2 yd. $668.75 $1,424.30 $2,134.51 $2,870.73 $3,666.26 $4,580.46 $5,494.66 Two 2 yd. $1,424.48 $3,076.51 $4,610.49 $6,200.73 $7,919.16 $9,893.79 $11,868.42 Three 2 yd. $2,057.61 $4,443.77 $6,659.63 $8,956.66 $11,438.72 $14,291.03 $17,143.35 Four 2 yd. $2,769.82 $5,982.04 $8,964.91 $12,057.00 $15,398.30 $19,237.94 $23,077.58

One 3 yd. $980.60 $2,126.60 $3,191.68 $4,295.83 $5,488.85 $6,859.64 $8,230.43 Two 3 yd. $2,020.08 $4,380.76 $6,574.90 $8,849.40 $11,307.04 $14,130.96 $16,954.88 Three 3 yd. $3,059.54 $6,634.94 $9,958.09 $13,403.02 $17,125.24 $21,402.21 $25,679.19

One 4 yd. $1,273.16 $2,796.12 $4,215.53 $5,686.95 $7,276.51 $9,102.34 $10,928.18 Two 4 yd. $2,622.66 $5,760.06 $8,684.02 $11,715.12 $14,989.58 $18,750.86 $22,512.15 Three 4 yd. $3,972.18 $8,723.94 $13,152.46 $17,743.26 $22,702.66 $28,399.31 $34,095.97

One 6 yd. $1,894.92 $4,177.31 $6,306.04 $8,512.84 $10,896.70 $13,634.66 $16,372.61 Two 6 yd. $3,903.56 $8,605.23 $12,990.48 $17,536.43 $22,447.20 $28,087.38 $33,727.57

ATTACHMENT 1
Collection Rates Effective July 1, 2025

96 Table 3

MONTHLY RATES FOR CUSTOMER OWNED BINS
Number of Collections Per Week

BIN SIZE (CUBIC
YARDS) 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK One 1.5 yd $445.74 $1,004.34 $1,535.77 $2,086.68 $2,681.47 $3,364.07 $4,145.86 Two 1.5 yd. $1,028.16 $2,261.34 $3,411.00 $4,602.76 $5,890.21 $7,368.97 $8,954.94 Three 1.5 yd $1,567.78 $3,406.22 $5,115.59 $6,887.56 $8,802.16 $11,002.05 $13,308.14 Four 1.5 yd $2,136.74 $4,614.74 $6,915.80 $9,301.13 $11,878.70 $14,840.68 $17,909.98

One 2 yd. $594.35 $1,339.12 $2,047.66 $2,782.23 $3,575.30 $4,485.36 $5,494.66 Two 2 yd. $1,344.10 $2,984.49 $4,516.74 $6,105.15 $7,820.93 $9,791.20 $11,868.42 Three 2 yd. $1,980.17 $4,355.23 $6,569.34 $8,864.60 $11,344.08 $14,192.12 $17,143.35 Four 2 yd. $2,691.68 $5,892.60 $8,873.74 $11,964.04 $15,302.76 $19,138.06 $23,077.58

One 3 yd. $877.58 $2,008.65 $3,071.49 $4,173.33 $5,362.92 $6,728.03 $8,230.43 Two 3 yd. $1,913.92 $4,259.33 $6,574.90 $8,723.23 $11,177.33 $13,995.32 $16,954.88 Three 3 yd. $2,952.36 $6,512.31 $9,833.11 $13,275.60 $16,994.26 $21,265.31 $25,679.19

One 4 yd. $1,170.11 $2,678.21 $4,095.30 $5,564.44 $7,150.54 $8,970.70 $10,928.18 Two 4 yd. $2,516.52 $5,638.58 $8,560.18 $11,588.91 $14,859.84 $18,615.25 $22,512.15 Three 4 yd. $3,865.00 $8,601.29 $13,027.46 $17,615.84 $22,571.65 $28,262.43 $34,095.97

One 6 yd. $1,755.13 $4,017.31 $6,142.96 $8,346.67 $10,725.79 $13,456.03 $16,372.61 Two 6 yd. $3,759.55 $8,440.44 $12,822.50 $17,365.26 $22,271.20 $27,903.41 $33,727.57

Table 4

COMMERCIAL AND MULTIFAMILY SOLID WASTE CART RATES
The following rates apply to multifamily solid waste carts that are used in common areas and/or enclosures throughout the mul tifamily property. For carts that are assigned to, and serving a single, specific, multifamily unit, see the rates in Table 1.

1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $53.77 $107.53 $161.29 $215.07 $268.84 $322.59 $376.34 65 gallon $107.77 $215.48 $323.23 $431.02 $538.76 $646.54 $754.32 95 gallon $161.38 $322.75 $484.13 $645.52 $806.88 $968.28 $1,129.69

ATTACHMENT 1
Collection Rates Effective July 1, 2025

97 COMPACTOR, ROLL OFF BOX AND TEMPORARY BIN RATES
Table 5
RATES FOR COMMERCIAL AND MULTIFAMILY COMPACTOR SERVICE – LESS THAN 6 CUBIC YARDS Compacted Rate Per Cubic Yard = $145.99
To calculate rate per month = [(rate per compacted cubic yard x size of compactor x # of pick-ups per week x 52 weeks)/12 months]

Table 6
RATES FOR ROLL OFF SERVICE – 10 CUBIC YARD BOXES AND LARGER (UNCOMPACTED) Uncompacted Rate per Cubic Yard $46.42

SIZE OF ROLL OFF (CUBIC YARDS) RATE PER SERVICE
10 $464.20
15 $696.30
20 $928.40
25 $1,160.50
30 $1,392.60
40 $1,856.80

To calculate rate per month: [(Uncompacted rate per cubic yard x size of roll off box x number of pickups per week x 52 weeks )/12 months] To calculate rate per service: size of roll off box x uncompacted rate per cubic yard

Table 7
RATES FOR ROLL OFF SERVICE FOR COMPACTORS – 6 CUBIC YARDS AND LARGER Compacted Rate Per Cubic Yard $145.99

SIZE OF COMPACTOR
(CUBIC YARDS) RATE PER MONTH (1X/WEEK SERVICE) PER SERVICE 6 $3,795.74 $875.94
10 $6,326.23 $1,459.90
15 $9,489.35 $2,189.85
20 $12,652.47 $2,919.80
25 $15,815.58 $3,649.75
30 $18,978.70 $4,379.70

To calculate rate per month: [(Compacted rate per cubic yard x size of compactor x number of pickups per week x 52 weeks)/12 months] To calculate rate per service: size of compactor x compacted rate per cubic yard

ATTACHMENT 1
Collection Rates Effective July 1, 2025

98 Table 8

RATES FOR SERVICE FOR TEMPORARY BINS FOR SOLID WASTE

TEMPORARY BIN SIZES RATE PER MONTH

1.5 cubic yards $240.60

2.0 cubic yards $240.60

3.0 cubic yards $287.02

4.0 cubic yards $333.42

6.0 cubic yards $426.27
Cost Per Cubic Yard $46.43

Table 9

RATES FOR ROLL OFF BOXES CONTAINING SOURCE SEPARATED RECYCLABLE MATERIALS

10 CUBIC YARDS RATE PER SERVICE
Asphalt $230.48
Concrete $274.38
Dirt $329.27
20 CUBIC YARDS RATE PER SERVICE
Clean Wood $219.51
Yard Trimmings $373.18
30 CUBIC YARDS RATE PER SERVICE
Metal $0.00
Clean Wood $274.38
Yard Trimmings $482.93

OTHER RATE PER SERVICE
Manure $219.51
Pomace $219.51
Dry Wall $219.51

Table 10

RATES FOR ROLL OFF BOXES CONTAINING SOURCE SEPARATED CARPET FOR RECYCLING (Rates apply to residential, commercial and multifamily carpet collection service)

ROLL OFF BOX SIZE RATE PER SERVICE
20 Cubic Yards $337.81
30 Cubic Yards $451.86
40 Cubic Yards $565.89

ATTACHMENT 1
Collection Rates Effective July 1, 2025

99 RATES FOR COMMERCIAL, MULTIFAMILY AND SPECIAL EVENT COMPOSTABLES COLLECTION Table 11

MONTHLY RATES FOR COMMERCIAL FOOD SCRAP COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $31.68 $62.72 $93.76 $124.81 $155.85 $186.88 $217.91 65 gallon $61.49 $122.31 $183.16 $244.02 $304.86 $365.72 $426.58 95 gallon $91.09 $181.54 $272.00 $362.46 $452.90 $543.37 $633.84 1 Cubic Yard $189.98 $399.45 $596.77 $801.06 $1,021.24 $1,273.20 $1,525.17 2 Cubic Yards $375.64 $793.37 $1,186.80 $1,594.17 $2,033.32 $2,536.04 $3,038.76

Table 12

MONTHLY RATES FOR MULTIFAMILY FOOD SCRAP COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $34.26 $67.89 $101.51 $135.14 $168.77 $202.38 $236.00 65 gallon $64.07 $127.48 $190.91 $254.35 $317.78 $381.22 $444.66 95 gallon $93.68 $186.71 $279.75 $372.79 $465.82 $558.87 $651.92 1 Cubic Yard $192.56 $404.62 $604.52 $811.39 $1,034.16 $1,288.70 $1,543.25 2 Cubic Yards $378.22 $798.53 $1,194.55 $1,604.51 $2,046.24 $2,551.54 $3,056.84

Table 13

MONTHLY RATES FOR COMMERCIAL PACKAGED ORGANICS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $32.01 $63.38 $94.75 $126.14 $157.51 $188.88 $220.24 65 gallon $62.11 $123.54 $185.01 $246.49 $307.94 $369.42 $430.89 95 gallon $91.99 $183.35 $274.70 $366.07 $457.41 $548.78 $640.15 1 Cubic Yard $191.88 $403.25 $602.47 $808.65 $1,030.73 $1,284.59 $1,538.45 2 Cubic Yards $379.44 $800.96 $1,198.19 $1,609.36 $2,052.30 $2,558.82 $3,065.33

ATTACHMENT 1
Collection Rates Effective July 1, 2025

100
Table 14

MONTHLY RATES FOR MULTIFAMILY PACKAGED ORGANICS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $34.60 $68.55 $102.50 $136.47 $170.43 $204.38 $238.32 65 gallon $64.69 $128.71 $192.76 $256.82 $320.86 $384.92 $448.98 95 gallon $94.58 $188.51 $282.45 $376.40 $470.33 $564.28 $658.23 1 Cubic Yard $194.46 $408.41 $610.22 $818.99 $1,043.65 $1,300.09 $1,556.54 2 Cubic Yards $382.02 $806.13 $1,205.94 $1,619.69 $2,065.22 $2,574.32 $3,083.41

Table 15

MONTHLY RATES FOR COMMERCIAL YARD TRIMMINGS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $2.24 $4.48 $6.71 $8.95 $11.19 $13.43 $15.67
65 gallon $3.12 $6.24 $9.36 $12.48 $15.60 $18.72 $21.84 95 gallon $4.00 $8.00 $12.01 $16.01 $20.01 $24.01 $28.01 1 Cubic Yard $7.09 $14.18 $21.26 $28.35 $35.44 $42.53 $49.62 2 Cubic Yards $12.97 $25.94 $38.90 $51.87 $64.84 $77.81 $90.77 3 Cubic Yards $18.85 $37.69 $56.54 $75.39 $94.23 $113.08 $131.93 4 Cubic Yards $24.73 $49.45 $74.18 $98.91 $123.63 $148.36 $173.08 6 Cubic Yards $36.48 $72.97 $109.45 $145.94 $182.42 $218.91 $255.39

Table 16

MONTHLY RATES FOR MULTIFAMILY YARD TRIMMINGS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $4.82 $9.64 $14.46 $19.28 $24.11 $28.93 $33.75 65 gallon $5.70 $11.41 $17.11 $22.81 $28.52 $34.22 $39.92 95 gallon $6.59 $13.17 $19.76 $26.34 $32.93 $39.51 $46.10 1 Cubic Yard $9.67 $19.34 $29.01 $38.69 $48.36 $58.03 $67.70 2 Cubic Yards $15.55 $31.10 $46.65 $62.20 $77.75 $93.31 $108.86 3 Cubic Yards $21.43 $42.86 $64.29 $85.72 $107.15 $128.58 $150.01 4 Cubic Yards $27.31 $54.62 $81.93 $109.24 $136.55 $163.86 $191.17 6 Cubic Yards $39.07 $78.14 $117.20 $156.27 $195.34 $234.41 $273.48

ATTACHMENT 1
Collection Rates Effective July 1, 2025

101
Table 17
SPECIAL EVENT FOOD SCRAP COLLECTION – RATE PER CONTAINER PER SERVICE

35-gallon Food Scrap Cart $12.85
65-gallon Food Scrap Cart $19.25
95-gallon Food Scrap Cart $25.66

1.5 Cubic Yards Food Scrap Bin $138.76
2 Cubic Yards Food Scrap Bin $157.39
3 Cubic Yards Food Scrap Bin $194.71
4 Cubic Yards Food Scrap Bin $232.02
6 Cubic Yards Food Scrap Bin $307.80

Table 18

FOOD SCRAP COMPACTOR SERVICE

Cost Per Yard (Compacted) $97.76
COMPACTORS (CUBIC YARDS) PER MONTH/1X

WEEK PER SERVICE
6 $2,541.76 $586.56
10 $4,236.27 $977.60
15 $6,354.40 $1,466.40
20 $8,472.53 $1,955.20
25 $10,590.67 $2,444.00
30 $12,708.80 $2,932.80

ATTACHMENT 1
Collection Rates Effective July 1, 2025

102

Table 19
RATES PER SERVICE FOR SPLIT 20 CUBIC YARD ROLL OFF BOXES

CONTAINING TWO SOURCE SEPARATED RECYCLABLE MATERIALS

MATERIALS (TWO PER SPLIT BOX) RATE PER SERVICE
MSW & Clean Wood $629.62
MSW & Yard Trimmings $706.47
MSW & Dry Wall $629.62
MSW & Metal $519.87
MSW & Cardboard $519.87
MSW & Mixed Recyclable Materials $519.87
Clean Wood & Yard Trimmings $296.35
Clean Wood & Dry Wall $219.51
Clean Wood & Metal $109.76
Clean Wood & Cardboard $109.76
Clean Wood & Mixed Recyclable Materials $109.76
Yard Trimmings & Dry Wall $296.35
Yard Trimmings & Metal $186.60
Yard Trimmings & Cardboard $186.60
Yard Trimmings and Mixed Recyclable Materials $186.60
Dry Wall & Metal $109.76
Dry Wall & Cardboard $109.76
Dry Wall & Mixed Recyclable Materials $109.76
Metal & Cardboard No Charge
Metal & Mixed Recyclable Materials No Charge
Cardboard & Mixed Recyclable Materials No Charge

ATTACHMENT 1
Collection Rates Effective July 1, 2025

103
Table 20

RATES FOR MISCELLANEOUS SERVICES

RESIDENTIAL
Additional Carts (Cost/Cart/Month)
RATE
Solid Waste Provided at monthly rate in Table 1 multiplied by number of carts
RECYCLING (AFTER 4-35 GAL OR 2-95 GAL CARTS INCLUDED IN BASE RESIDENTIAL RATE) RATE 20 gallon $5.79
35 gallon $5.79
65 gallon $5.79
95 gallon $5.79
YARDWASTE/FOOD (AFTER 4-35 GAL OR 2-95 GAL CARTS IN BASE RESIDENTIAL RATE) RATE 20 gallon $5.79
35 gallon $5.79
65 gallon $5.79
95 gallon $5.79

SPECIAL SERVICES (COST PER SERVICE) RATE
Bulky Items: large non-metal furniture that cannot fit in standard carts/bins & are not accepted in City’s Recycle More Program e.g., sofas, wood furniture, etc. ($/service up to 4 bulky items/service) $63.66
Each bulky item over 4 bulky items
($/Item - excluding e-waste & cardboard) $25.68
Cardboard and single stream recyclables No Charge
E-Waste (CRTs/LCDs), Metal Items and Cooking Oil No Charge EXTRA SERVICE ($/BIN/SERVICE) RATE
On day of service (Monday-Friday) up to 9 30-gal. bags or up to 9 30-gal. cans $10.76 /each barrel or bag
On day of service (Monday-Friday) 10 or more 30-gal. bags or cans $52/yard Not on day of service (Monday-Friday) up to 9 30-gal. bags or cans $10.76/barrel or bag + $85.94 trip charge Not on day of service (Monday-Friday)
10 or more 30-gal. bags or cans $52/yard + $85.94 trip charge Not on day of service (Saturday, Sunday)
up to 9 30-gal. bags or cans $10.76/barrel + $248.36 trip charge Not on day of service (Saturday, Sunday)
10 or more 30-gal. bags or cans $52/yard + $248.36 trip charge

BACKYARD SERVICE
(INCLUDES SOLID WASTE, RECYCLING, YARDWASTE/FOODSCRAPS - COST/MONTH) RATE
5-600 feet from curb to backyard cart location $38.81
601 feet or more from curb to backyard cart location $48.01 With letter from physician indicating resident is physically unable and/or advised not to wheel cart(s) to the curb
No Charge

COMMERCIAL & MULTI-FAMILY RATE
Bulky Items: large non-metal furniture that cannot fit in standard carts/bins & are not accepted in City’s Recycle More Program e.g., sofas, wood furniture, etc. ($/service up to 4 bulky items/service) $127.30
Each bulky item over 4 bulky items
($/Item – excluding e-waste) $25.68
Cardboard and single stream recyclables No Charge
Electronic Waste (CRTs/LCDs), Metal Items and Cooking Oil No Charge Pallets (Up to 10 pallets) $127.30

ATTACHMENT 1
Collection Rates Effective July 1, 2025

104

Table 20, continued

RATES FOR MISCELLANEOUS SERVICES

EXTRA SERVICE (COST/CART/SERVICE AND COST/BIN/SERVICE) RATE 35 gallon $25.68
65 gallon $38.52
95 gallon $51.32

1.5 cubic yards $277.49
2 cubic yards $314.80
3 cubic yards $389.41
4 cubic yards $464.02
6 cubic yards $615.62

MISCELLANEOUS RATE
Bin Cleaning/Bin Exchange ($/Bin/Service) $347.40
Heavy Waste (Rocks, dirt or other materials in bins or carts that exceed manufacturer’s maximum weight for container)
Cost / collection
$154.06
Hourly labor charge (for 2 persons) for on-site transfer of solid waste/materials from smaller exterior collection containers to larger exterior collection container(s)
$182.37
Locking Bin or Key Fee (if bin must be unlocked prior to service or if key must be used to access container(s)) ($/month) $12.85

RECYCLING ($/Service) RATE
Single Stream Recyclables (less than 10 cubic yard) No Charge Source Separated Recyclables (less than 10 cubic yard) No Charge Yard Trimmings (less than 10 cubic yard) No Charge

SATURDAY, SUNDAY SERVICE
(Cost/month for 1x/week solid waste service)
RATE
35 gallon $172.24
65 gallon $172.24
95 gallon $172.24

TRIP CHARGES for return to collect containers not available/ accessible for pickup or for a one-time collection on a special (non-regular route) day (Cost/Trip)

up to 35 gallon $85.96
35 gallon – 6 cubic yards $165.57

ATTACHMENT 1
Collection Rates Effective July 1, 2025

105

Table 20, continued

RATES FOR MISCELLANEOUS SERVICES

ROLL OFF/COMPACTOR/TEMPORARY BINS RATE
Overweight Surcharge (10 cubic yards and more) if roll off box or compactor weight causes collection truck to exceed legal highway weight limit established by State of California. Cost of labor and equipment to empty the excess into another container.

Trip charge ($275.91) plus cost to bring in
equipment capable of removing such materials
plus $109.23 per ton
Sealed watertight roll off boxes (for wet materials such as pomace) Additional cost/ service for special sealed box and added labor $58.02 Demurrage for non-removal after 3 days (Cost/Bin/Day)
$34.27
Trip Charge - Move/Relocate Box
(Cost/Box/ Service) $275.91
Rental Fee (Cost/day) $34.27
Temporary Bins (Cost/5 days)
2 cubic yards $269.46
3 cubic yards $321.46
4 cubic yards $373.43

OTHER FEES RATE
City Directed Spill Clean Up
(waste around overflowing bins/carts after 2 warnings
and direction from City)
$460.96
Contaminated Recycling Charges (materials containing 5% or more contamination that must be disposed as solid waste)

Contaminated residential recyclable materials, yard trimmings, and co-collected food scraps/yard trimmings

35 gallon $25.68
65 gallon $38.52
95 gallon $51.32
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in carts
Rates in Table 4 apply
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in bins

1.5 cubic yards $277.49
2 cubic yards $314.80
3 cubic yards $389.41
4 cubic yards $464.02
6 cubic yards $615.62
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in roll off boxes Rates in Table 6 apply
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in compactors
Rates in Tables 5 and 7 apply

ATTACHMENT 1

Collection Rates Effective January 1, 2026

1 Table 20, continued

RATES FOR MISCELLANEOUS SERVICES

COMPLIANCE FINES
Fines are charged for violations occurring within a 12 month period

RATE
First violation within a 12 month period
Second violation within a 12 month period
Third violation or more within a 12 month period
$100
$200
$500

DEPOSITS
Residential Service and Commercial Cart Service: One-time deposit to initiate service, refundable after 12 months with 1% interest for customer in good standing

RATE
Deposit for Commercial Cart Service $80.00
Deposit for Residential Service $40.00
Residential Cart Redelivery Charge $25.00
Deposit for Commercial Bins Cost of 1 month’s service refundable after 12 months with 1% interest for customer in good
standing
Deposit for Roll Off/Compactor Service
(Applies to new customers – deposit applied to
cost of first service)
RATE
Solid Waste 50% of service
Recyclable Materials 50% of service

ATTACHMENT 1

Collection Rates Effective January 1, 2026

2 RESIDENTIAL AND MULTIFAMILY
Residential monthly rates include weekly collection of solid waste, recyclable materials and co-collected yard trimmings and food scraps.

Residential rates include one solid waste cart of the selected size and up to four 35 -gallon carts for recyclable materials and up to four 35 -gallon carts for yard trimmings/food scraps OR up to two 95 -gallon carts for recyclable materials and up to two 95 -gallon carts for yard trimmings/food scraps. These rates apply to single-family residences, duplexes, triplexes and multifamily units that have individual weekly cart service for each unit. For carts used in common multifamily areas and/or enclosures (and not serving a single, specific multifamily unit) see the rates in Table 4.

Table 1

RESIDENTIAL AND MULTIFAMILY CART RATES FOR WEEKLY SERVICE TO

INDIVIDUAL HOMES AND INDIVIDUAL MULTIFAMILY UNITS

COST PER MONTH
20 gallon $37.62
35 gallon $47.17
65 gallon $72.34
95 gallon $111.25

ATTACHMENT 1

Collection Rates Effective January 1, 2026

3 Table 2

COMMERCIAL AND MULTIFAMILY RATES

MONTHLY RATES FOR BINS PROVIDED BY NAPA RECYCLING AND WASTE SERVICES, LLC TO CUSTOMERS Number of Collections Per Week

BIN SIZE (CUBIC
YARDS) 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK One 1.5 yd $572.22 $1,198.47 $1,784.85 $2,392.71 $3,049.70 $3,805.07 $4,560.45 Two 1.5 yd. $1,219.41 $2,588.72 $3,855.28 $5,168.17 $6,587.36 $8,218.89 $9,850.43 Three 1.5 yd $1,812.18 $3,847.06 $5,729.37 $7,680.50 $9,789.51 $12,214.24 $14,638.95 Four 1.5 yd $2,438.84 $5,177.39 $7,710.49 $10,336.36 $13,174.62 $16,437.80 $19,700.98

One 2 yd. $735.63 $1,566.73 $2,347.96 $3,157.80 $4,032.89 $5,038.51 $6,044.13 Two 2 yd. $1,566.93 $3,384.16 $5,071.54 $6,820.80 $8,711.08 $10,883.17 $13,055.26 Three 2 yd. $2,263.37 $4,888.15 $7,325.59 $9,852.33 $12,582.59 $15,720.13 $18,857.69 Four 2 yd. $3,046.80 $6,580.24 $9,861.40 $13,262.70 $16,938.13 $21,161.73 $25,385.34

One 3 yd. $1,078.66 $2,339.26 $3,510.85 $4,725.41 $6,037.74 $7,545.60 $9,053.47 Two 3 yd. $2,222.09 $4,818.84 $7,232.39 $9,734.34 $12,437.74 $15,544.06 $18,650.37 Three 3 yd. $3,365.49 $7,298.43 $10,953.90 $14,743.32 $18,837.76 $23,542.43 $28,247.11

One 4 yd. $1,400.48 $3,075.73 $4,637.08 $6,255.65 $8,004.16 $10,012.57 $12,021.00 Two 4 yd. $2,884.93 $6,336.07 $9,552.42 $12,886.63 $16,488.54 $20,625.95 $24,763.37 Three 4 yd. $4,369.40 $9,596.33 $14,467.71 $19,517.59 $24,972.93 $31,239.24 $37,505.57

One 6 yd. $2,084.41 $4,595.04 $6,936.64 $9,364.12 $11,986.37 $14,998.13 $18,009.87 Two 6 yd. $4,293.92 $9,465.75 $14,289.53 $19,290.07 $24,691.92 $30,896.12 $37,100.33

ATTACHMENT 1
Collection Rates Effective January 1, 2026

4 Table 3

MONTHLY RATES FOR CUSTOMER OWNED BINS
Number of Collections Per Week

BIN SIZE (CUBIC
YARDS) 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK One 1.5 yd $490.31 $1,104.77 $1,689.35 $2,295.35 $2,949.62 $3,700.48 $4,560.45 Two 1.5 yd. $1,130.98 $2,487.47 $3,752.10 $5,063.04 $6,479.23 $8,105.87 $9,850.43 Three 1.5 yd $1,724.56 $3,746.84 $5,627.15 $7,576.32 $9,682.38 $12,102.26 $14,638.95 Four 1.5 yd $2,350.41 $5,076.21 $7,607.38 $10,231.24 $13,066.57 $16,324.75 $19,700.98

One 2 yd. $653.79 $1,473.03 $2,252.43 $3,060.45 $3,932.83 $4,933.90 $6,044.13 Two 2 yd. $1,478.51 $3,282.94 $4,968.41 $6,715.67 $8,603.02 $10,770.32 $13,055.26 Three 2 yd. $2,178.19 $4,790.75 $7,226.27 $9,751.06 $12,478.49 $15,611.33 $18,857.69 Four 2 yd. $2,960.85 $6,481.86 $9,761.11 $13,160.44 $16,833.04 $21,051.87 $25,385.34

One 3 yd. $965.34 $2,209.52 $3,378.64 $4,590.66 $5,899.21 $7,400.83 $9,053.47 Two 3 yd. $2,105.31 $4,685.26 $7,232.39 $9,595.55 $12,295.06 $15,394.85 $18,650.37 Three 3 yd. $3,247.60 $7,163.54 $10,816.42 $14,603.16 $18,693.69 $23,391.84 $28,247.11

One 4 yd. $1,287.12 $2,946.03 $4,504.83 $6,120.88 $7,865.59 $9,867.77 $12,021.00 Two 4 yd. $2,768.17 $6,202.44 $9,416.20 $12,747.80 $16,345.82 $20,476.78 $24,763.37 Three 4 yd. $4,251.50 $9,461.42 $14,330.21 $19,377.42 $24,828.82 $31,088.67 $37,505.57

One 6 yd. $1,930.64 $4,419.04 $6,757.26 $9,181.34 $11,798.37 $14,801.63 $18,009.87 Two 6 yd. $4,135.51 $9,284.48 $14,104.75 $19,101.79 $24,498.32 $30,693.75 $37,100.33

Table 4

COMMERCIAL AND MULTIFAMILY SOLID WASTE CART RATES
The following rates apply to multifamily solid waste carts that are used in common areas and/or enclosures throughout the mul tifamily property. For carts that are assigned to, and serving a single, specific, multifamily unit, see the rates in Table 1.

1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $59.15 $118.28 $177.42 $236.58 $295.72 $354.85 $413.97 65 gallon $118.55 $237.03 $355.55 $474.12 $592.64 $711.19 $829.75 95 gallon $177.52 $355.03 $532.54 $710.07 $887.57 $1,065.11 $1,242.66

ATTACHMENT 1
Collection Rates Effective January 1, 2026

5 COMPACTOR, ROLL OFF BOX AND TEMPORARY BIN RATES
Table 5
RATES FOR COMMERCIAL AND MULTIFAMILY COMPACTOR SERVICE – LESS THAN 6 CUBIC YARDS Compacted Rate Per Cubic Yard = $160.59

To calculate rate per month = [(rate per compacted cubic yard x size of compactor x # of pick-ups per week x 52 weeks)/12 months]

Table 6
RATES FOR ROLL OFF SERVICE – 10 CUBIC YARD BOXES AND LARGER (UNCOMPACTED) Uncompacted Rate per Cubic Yard $46.42

SIZE OF ROLL OFF (CUBIC YARDS) RATE PER SERVICE
10 $464.20
15 $696.30
20 $928.40
25 $1,160.50
30 $1,392.60
40 $1,856.80

To calculate rate per month: [(Uncompacted rate per cubic yard x size of roll off box x number of pickups per week x 52 weeks )/12 months] To calculate rate per service: size of roll off box x uncompacted rate per cubic yard

Table 7
RATES FOR ROLL OFF SERVICE FOR COMPACTORS – 6 CUBIC YARDS AND LARGER Compacted Rate Per Cubic Yard $160.59

SIZE OF COMPACTOR
(CUBIC YARDS) RATE PER MONTH (1X/WEEK SERVICE) PER SERVICE 6 $4,175.34 $963.54
10 $6,958.90 $1,605.90
15 $10,438.35 $2,408.85
20 $13,917.80 $3,211.80
25 $17,397.25 $4,014.75
30 $20,876.70 $4,817.70

To calculate rate per month: [(Compacted rate per cubic yard x size of compactor x number of pickups per week x 52 weeks)/12 months] To calculate rate per service: size of compactor x compacted rate per cubic yard

ATTACHMENT 1
Collection Rates Effective January 1, 2026

6 Table 8

RATES FOR SERVICE FOR TEMPORARY BINS FOR SOLID WASTE

TEMPORARY BIN SIZES RATE PER MONTH

1.5 cubic yards $240.60

2.0 cubic yards $240.60

3.0 cubic yards $287.02

4.0 cubic yards $333.42

6.0 cubic yards $426.27
Cost Per Cubic Yard $46.43

Table 9

RATES FOR ROLL OFF BOXES CONTAINING SOURCE SEPARATED RECYCLABLE MATERIALS

10 CUBIC YARDS RATE PER SERVICE
Asphalt $253.53
Concrete $301.82
Dirt $362.20
20 CUBIC YARDS RATE PER SERVICE
Clean Wood $241.46
Yard Trimmings $410.50
30 CUBIC YARDS RATE PER SERVICE
Metal $0.00
Clean Wood $301.82
Yard Trimmings $531.23

OTHER RATE PER SERVICE
Manure $241.46
Pomace $241.46
Dry Wall $241.46

Table 10

RATES FOR ROLL OFF BOXES CONTAINING SOURCE SEPARATED CARPET FOR RECYCLING (Rates apply to residential, commercial and multifamily carpet collection service)

ROLL OFF BOX SIZE RATE PER SERVICE
20 Cubic Yards $371.59
30 Cubic Yards $497.05
40 Cubic Yards $622.48

ATTACHMENT 1
Collection Rates Effective January 1, 2026

7 RATES FOR COMMERCIAL, MULTIFAMILY AND SPECIAL EVENT COMPOSTABLES COLLECTION Table 11

MONTHLY RATES FOR COMMERCIAL FOOD SCRAP COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $27.76 $54.20 $80.63 $107.08 $133.52 $159.95 $186.38 65 gallon $51.30 $101.25 $151.22 $201.21 $251.17 $301.15 $351.14 95 gallon $74.68 $148.03 $221.39 $294.76 $368.11 $441.47 $514.84 1 Cubic Yard $157.24 $323.99 $481.63 $644.49 $819.27 $1,017.89 $1,216.51 2 Cubic Yards $305.23 $636.04 $948.63 $1,271.67 $1,618.55 $2,013.10 $2,407.65

Table 12

MONTHLY RATES FOR MULTIFAMILY FOOD SCRAP COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $33.11 $64.89 $96.67 $128.47 $160.25 $192.03 $223.81 65 gallon $56.64 $111.94 $167.26 $222.60 $277.91 $333.24 $388.57 95 gallon $80.03 $158.73 $237.44 $316.15 $394.84 $473.56 $552.28 1 Cubic Yard $162.59 $334.68 $497.67 $665.88 $846.01 $1,049.98 $1,253.95 2 Cubic Yards $310.58 $646.74 $964.67 $1,293.06 $1,645.28 $2,045.18 $2,445.08

Table 13

MONTHLY RATES FOR COMMERCIAL PACKAGED ORGANICS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $28.45 $55.58 $82.71 $109.85 $136.98 $164.11 $191.23 65 gallon $52.58 $103.83 $155.09 $206.36 $257.61 $308.88 $360.15 95 gallon $76.56 $151.80 $227.04 $302.29 $377.52 $452.77 $528.02 1 Cubic Yard $161.20 $331.92 $493.52 $660.35 $839.09 $1,041.67 $1,244.26 2 Cubic Yards $313.16 $651.89 $972.41 $1,303.38 $1,658.18 $2,060.66 $2,463.14

ATTACHMENT 1
Collection Rates Effective January 1, 2026

8 Table 14

MONTHLY RATES FOR MULTIFAMILY PACKAGED ORGANICS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $33.80 $66.28 $98.75 $131.24 $163.72 $196.19 $228.67 65 gallon $57.93 $114.52 $171.13 $227.75 $284.35 $340.97 $397.58 95 gallon $81.91 $162.49 $243.08 $323.68 $404.26 $484.86 $565.45 1 Cubic Yard $166.55 $342.61 $509.56 $681.74 $865.83 $1,073.76 $1,281.69 2 Cubic Yards $318.51 $662.59 $988.45 $1,324.77 $1,684.92 $2,092.74 $2,500.57

Table 15

MONTHLY RATES FOR COMMERCIAL YARD TRIMMINGS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $4.84 $9.67 $14.51 $19.34 $24.18 $29.02 $33.85 65 gallon $6.68 $13.35 $20.03 $26.71 $33.39 $40.06 $46.74 95 gallon $8.52 $17.04 $25.56 $34.07 $42.59 $51.11 $59.63 1 Cubic Yard $14.96 $29.93 $44.89 $59.85 $74.82 $89.78 $104.75 2 Cubic Yards $27.24 $54.48 $81.72 $108.96 $136.20 $163.44 $190.68 3 Cubic Yards $39.52 $79.03 $118.55 $158.06 $197.58 $237.09 $276.61 4 Cubic Yards $51.79 $103.58 $155.37 $207.17 $258.96 $310.75 $362.54 6 Cubic Yards $76.34 $152.69 $229.03 $305.37 $381.72 $458.06 $534.41

Table 16

MONTHLY RATES FOR MULTIFAMILY YARD TRIMMINGS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $10.18 $20.37 $30.55 $40.73 $50.92 $61.10 $71.28 65 gallon $12.02 $24.05 $36.07 $48.10 $60.12 $72.15 $84.17 95 gallon $13.87 $27.73 $41.60 $55.46 $69.33 $83.20 $97.06 1 Cubic Yard $20.31 $40.62 $60.93 $81.24 $101.56 $121.87 $142.18 2 Cubic Yards $32.59 $65.17 $97.76 $130.35 $162.94 $195.52 $228.11 3 Cubic Yards $44.86 $89.73 $134.59 $179.45 $224.32 $269.18 $314.04 4 Cubic Yards $57.14 $114.28 $171.42 $228.56 $285.70 $342.83 $399.97 6 Cubic Yards $81.69 $163.38 $245.07 $326.76 $408.46 $490.15 $571.84

ATTACHMENT 1
Collection Rates Effective January 1, 2026

9 Table 17
SPECIAL EVENT FOOD SCRAP COLLECTION – RATE PER CONTAINER PER SERVICE

35-gallon Food Scrap Cart $14.14
65-gallon Food Scrap Cart $21.18
95-gallon Food Scrap Cart $28.23

1.5 Cubic Yards Food Scrap Bin $152.64
2 Cubic Yards Food Scrap Bin $173.13
3 Cubic Yards Food Scrap Bin $214.18
4 Cubic Yards Food Scrap Bin $255.22
6 Cubic Yards Food Scrap Bin $338.58

Table 18

FOOD SCRAP COMPACTOR SERVICE

Cost Per Yard (Compacted) $97.76
COMPACTORS (CUBIC YARDS) PER MONTH/1X

WEEK PER SERVICE
6 $2,541.76 $586.56
10 $4,236.27 $977.60
15 $6,354.40 $1,466.40
20 $8,472.53 $1,955.20
25 $10,590.67 $2,444.00
30 $12,708.80 $2,932.80

ATTACHMENT 1
Collection Rates Effective January 1, 2026

10 Table 19
RATES PER SERVICE FOR SPLIT 20 CUBIC YARD ROLL OFF BOXES

CONTAINING TWO SOURCE SEPARATED RECYCLABLE MATERIALS

MATERIALS (TWO PER SPLIT BOX) RATE PER SERVICE
MSW & Clean Wood $692.58
MSW & Yard Trimmings $777.12
MSW & Dry Wall $692.58
MSW & Metal $571.86
MSW & Cardboard $571.86
MSW & Mixed Recyclable Materials $571.86
Clean Wood & Yard Trimmings $325.99
Clean Wood & Dry Wall $241.46
Clean Wood & Metal $120.74
Clean Wood & Cardboard $120.74
Clean Wood & Mixed Recyclable Materials $120.74
Yard Trimmings & Dry Wall $325.99
Yard Trimmings & Metal $205.26
Yard Trimmings & Cardboard $205.26
Yard Trimmings and Mixed Recyclable Materials $205.26
Dry Wall & Metal $120.74
Dry Wall & Cardboard $120.74
Dry Wall & Mixed Recyclable Materials $120.74
Metal & Cardboard No Charge
Metal & Mixed Recyclable Materials No Charge
Cardboard & Mixed Recyclable Materials No Charge

ATTACHMENT 1
Collection Rates Effective January 1, 2026

11 Table 20

RATES FOR MISCELLANEOUS SERVICES

RESIDENTIAL
Additional Carts (Cost/Cart/Month)
RATE
Solid Waste Provided at monthly rate in Table 1 multiplied by number of carts
RECYCLING (AFTER 4-35 GAL OR 2-95 GAL CARTS INCLUDED IN BASE RESIDENTIAL RATE) RATE 20 gallon $6.37
35 gallon $6.37
65 gallon $6.37
95 gallon $6.37
YARDWASTE/FOOD (AFTER 4-35 GAL OR 2-95 GAL CARTS IN BASE RESIDENTIAL RATE) RATE 20 gallon $6.37
35 gallon $6.37
65 gallon $6.37
95 gallon $6.37

SPECIAL SERVICES (COST PER SERVICE) RATE
Bulky Items: large non-metal furniture that cannot fit in standard carts/bins & are not accepted in City’s Recycle More Program e.g., sofas, wood furniture, etc. ($/service up to 4 bulky items/service) $70.03
Each bulky item over 4 bulky items
($/Item - excluding e-waste & cardboard) $28.25
Cardboard and single stream recyclables No Charge
E-Waste (CRTs/LCDs), Metal Items and Cooking Oil No Charge EXTRA SERVICE ($/BIN/SERVICE) RATE
On day of service (Monday-Friday) up to 9 30-gal. bags or up to 9 30-gal. cans $11.84 /each barrel or bag
On day of service (Monday-Friday) 10 or more 30-gal. bags or cans $57.20/yard Not on day of service (Monday-Friday) up to 9 30-gal. bags or cans $11.84/barrel or bag + $94.53 trip charge Not on day of service (Monday-Friday)
10 or more 30-gal. bags or cans $57.20/yard + $94.53 trip charge Not on day of service (Saturday, Sunday)
up to 9 30-gal. bags or cans $11.84/barrel + $273.2 trip charge Not on day of service (Saturday, Sunday)
10 or more 30-gal. bags or cans $57.20/yard + $273.2 trip charge

BACKYARD SERVICE
(INCLUDES SOLID WASTE, RECYCLING, YARDWASTE/FOODSCRAPS - COST/MONTH) RATE
5-600 feet from curb to backyard cart location $42.69
601 feet or more from curb to backyard cart location $52.81 With letter from physician indicating resident is physically unable and/or advised not to wheel cart(s) to the curb
No Charge

COMMERCIAL & MULTI-FAMILY RATE
Bulky Items: large non-metal furniture that cannot fit in standard carts/bins & are not accepted in City’s Recycle More Program e.g., sofas, wood furniture, etc. ($/service up to 4 bulky items/service) $140.03
Each bulky item over 4 bulky items
($/Item – excluding e-waste) $28.25
Cardboard and single stream recyclables No Charge
Electronic Waste (CRTs/LCDs), Metal Items and Cooking Oil No Charge Pallets (Up to 10 pallets) $140.03

ATTACHMENT 1
Collection Rates Effective January 1, 2026

12 Table 20, continued

RATES FOR MISCELLANEOUS SERVICES

EXTRA SERVICE (COST/CART/SERVICE AND COST/BIN/SERVICE) RATE 35 gallon $28.25
65 gallon $42.37
95 gallon $56.45

1.5 cubic yards $305.24
2 cubic yards $346.28
3 cubic yards $428.35
4 cubic yards $510.42
6 cubic yards $677.18

MISCELLANEOUS RATE
Bin Cleaning/Bin Exchange ($/Bin/Service) $382.14
Heavy Waste (Rocks, dirt or other materials in bins or carts that exceed manufacturer’s maximum weight for container)
Cost / collection
$169.47
Hourly labor charge (for 2 persons) for on-site transfer of solid waste/materials from smaller exterior collection containers to larger exterior collection container(s)
$200.61
Locking Bin or Key Fee (if bin must be unlocked prior to service or if key must be used to access container(s)) ($/month) $14.14

RECYCLING ($/Service) RATE
Single Stream Recyclables (less than 10 cubic yard) No Charge Source Separated Recyclables (less than 10 cubic yard) No Charge Yard Trimmings (less than 10 cubic yard) No Charge

SATURDAY, SUNDAY SERVICE
(Cost/month for 1x/week solid waste service)
RATE
35 gallon $212.20
65 gallon $212.20
95 gallon $212.20

TRIP CHARGES for return to collect containers not available/ accessible for pickup or for a one-time collection on a special (non-regular route) day (Cost/Trip)

up to 35 gallon $94.56
35 gallon – 6 cubic yards $182.13

ATTACHMENT 1
Collection Rates Effective January 1, 2026

13 Table 20, continued

RATES FOR MISCELLANEOUS SERVICES

ROLL OFF/COMPACTOR/TEMPORARY BINS RATE
Overweight Surcharge (10 cubic yards and more) if roll off box or compactor weight causes collection truck to exceed legal highway weight limit established by State of California. Cost of labor and equipment to empty the excess into another container.

Trip charge ($303.5) plus cost to bring in
equipment capable of removing such
materials plus $120.15 per ton
Sealed watertight roll off boxes (for wet materials such as pomace) Additional cost/ service for special sealed box and added labor $63.82 Demurrage for non-removal after 3 days (Cost/Bin/Day)
$37.70
Trip Charge - Move/Relocate Box
(Cost/Box/ Service) $303.50
Rental Fee (Cost/day) $37.70
Temporary Bins (Cost/5 days)
2 cubic yards $296.41
3 cubic yards $353.61
4 cubic yards $410.77

OTHER FEES RATE
City Directed Spill Clean Up
(waste around overflowing bins/carts after 2 warnings
and direction from City)
$507.06
Contaminated Recycling Charges (materials containing 5% or more contamination that must be disposed as solid waste)

Contaminated residential recyclable materials, yard trimmings, and co-collected food scraps/yard trimmings

35 gallon $28.25
65 gallon $42.37
95 gallon $56.45
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in carts
Rates in Table 4 apply
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in bins

1.5 cubic yards $305.24
2 cubic yards $346.28
3 cubic yards $428.35
4 cubic yards $510.42
6 cubic yards $677.18
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in roll off boxes Rates in Table 6 apply
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in compactors
Rates in Tables 5 and 7 apply

ATTACHMENT 1

Collection Rates Effective January 1, 2027

1 Table 20, continued

RATES FOR MISCELLANEOUS SERVICES

COMPLIANCE FINES
Fines are charged for violations occurring within a 12 month period

RATE
First violation within a 12 month period
Second violation within a 12 month period
Third violation or more within a 12 month period
$100
$200
$500

DEPOSITS
Residential Service and Commercial Cart Service: One-time deposit to initiate service, refundable after 12 months with 1% interest for customer in good standing

RATE
Deposit for Commercial Cart Service $80.00
Deposit for Residential Service $40.00
Residential Cart Redelivery Charge $25.00
Deposit for Commercial Bins Cost of 1 month’s service refundable after 12 months with 1% interest for customer in good
standing
Deposit for Roll Off/Compactor Service
(Applies to new customers – deposit applied to
cost of first service)
RATE
Solid Waste 50% of service
Recyclable Materials 50% of service

ATTACHMENT 1

Collection Rates Effective January 1, 2027

2 RESIDENTIAL AND MULTIFAMILY
Residential monthly rates include weekly collection of solid waste, recyclable materials and co-collected yard trimmings and food scraps.

Residential rates include one solid waste cart of the selected size and up to four 35 -gallon carts for recyclable materials and up to four 35 -gallon carts for yard trimmings/food scraps OR up to two 95 -gallon carts for recyclable materials and up to two 95 -gallon carts for yard trimmings/food scraps. These rates apply to single-family residences, duplexes, triplexes and multifamily units that have individual weekly cart service for each unit. For carts used in common multifamily areas and/or enclosures (and not serving a single, specific multifamily unit) see the rates in Table 4.

Table 1

RESIDENTIAL AND MULTIFAMILY CART RATES FOR WEEKLY SERVICE TO

INDIVIDUAL HOMES AND INDIVIDUAL MULTIFAMILY UNITS

COST PER MONTH
20 gallon $40.63
35 gallon $50.94
65 gallon $78.13
95 gallon $120.15

ATTACHMENT 1

Collection Rates Effective January 1, 2027

3 Table 2

COMMERCIAL AND MULTIFAMILY RATES

MONTHLY RATES FOR BINS PROVIDED BY NAPA RECYCLING AND WASTE SERVICES, LLC TO CUSTOMERS Number of Collections Per Week

BIN SIZE (CUBIC
YARDS) 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK One 1.5 yd $618.00 $1,294.35 $1,927.64 $2,584.13 $3,293.68 $4,109.48 $4,925.29 Two 1.5 yd. $1,316.96 $2,795.82 $4,163.70 $5,581.62 $7,114.35 $8,876.40 $10,638.46 Three 1.5 yd $1,957.15 $4,154.82 $6,187.72 $8,294.94 $10,572.67 $13,191.38 $15,810.07 Four 1.5 yd $2,633.95 $5,591.58 $8,327.33 $11,163.27 $14,228.59 $17,752.82 $21,277.06

One 2 yd. $794.48 $1,692.07 $2,535.80 $3,410.42 $4,355.52 $5,441.59 $6,527.66 Two 2 yd. $1,692.28 $3,654.89 $5,477.26 $7,366.46 $9,407.97 $11,753.82 $14,099.68 Three 2 yd. $2,444.44 $5,279.20 $7,911.64 $10,640.52 $13,589.20 $16,977.74 $20,366.31 Four 2 yd. $3,290.54 $7,106.66 $10,650.31 $14,323.72 $18,293.18 $22,854.67 $27,416.17

One 3 yd. $1,164.95 $2,526.40 $3,791.72 $5,103.44 $6,520.76 $8,149.25 $9,777.75 Two 3 yd. $2,399.86 $5,204.35 $7,810.98 $10,513.09 $13,432.76 $16,787.58 $20,142.40 Three 3 yd. $3,634.73 $7,882.30 $11,830.21 $15,922.79 $20,344.78 $25,425.82 $30,506.88

One 4 yd. $1,512.52 $3,321.79 $5,008.05 $6,756.10 $8,644.49 $10,813.58 $12,982.68 Two 4 yd. $3,115.72 $6,842.96 $10,316.61 $13,917.56 $17,807.62 $22,276.03 $26,744.44 Three 4 yd. $4,718.95 $10,364.04 $15,625.13 $21,079.00 $26,970.76 $33,738.38 $40,506.02

One 6 yd. $2,251.16 $4,962.64 $7,491.57 $10,113.25 $12,945.28 $16,197.98 $19,450.66 Two 6 yd. $4,637.43 $10,223.01 $15,432.69 $20,833.28 $26,667.27 $33,367.81 $40,068.36

ATTACHMENT 1

Collection Rates Effective January 1, 2027

4 Table 3

MONTHLY RATES FOR CUSTOMER OWNED BINS
Number of Collections Per Week

BIN SIZE (CUBIC
YARDS) 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK One 1.5 yd $529.53 $1,193.15 $1,824.50 $2,478.98 $3,185.59 $3,996.52 $4,925.29 Two 1.5 yd. $1,221.46 $2,686.47 $4,052.27 $5,468.08 $6,997.57 $8,754.34 $10,638.46 Three 1.5 yd $1,862.52 $4,046.59 $6,077.32 $8,182.43 $10,456.97 $13,070.44 $15,810.07 Four 1.5 yd $2,538.44 $5,482.31 $8,215.97 $11,049.74 $14,111.90 $17,630.73 $21,277.06

One 2 yd. $706.09 $1,590.87 $2,432.62 $3,305.29 $4,247.46 $5,328.61 $6,527.66 Two 2 yd. $1,596.79 $3,545.58 $5,365.88 $7,252.92 $9,291.26 $11,631.95 $14,099.68 Three 2 yd. $2,352.45 $5,174.01 $7,804.37 $10,531.14 $13,476.77 $16,860.24 $20,366.31 Four 2 yd. $3,197.72 $7,000.41 $10,542.00 $14,213.28 $18,179.68 $22,736.02 $27,416.17

One 3 yd. $1,042.57 $2,386.28 $3,648.93 $4,957.91 $6,371.15 $7,992.90 $9,777.75 Two 3 yd. $2,273.73 $5,060.08 $7,810.98 $10,363.19 $13,278.66 $16,626.44 $20,142.40 Three 3 yd. $3,507.41 $7,736.62 $11,681.73 $15,771.41 $20,189.19 $25,263.19 $30,506.88

One 4 yd. $1,390.09 $3,181.71 $4,865.22 $6,610.55 $8,494.84 $10,657.19 $12,982.68 Two 4 yd. $2,989.62 $6,698.64 $10,169.50 $13,767.62 $17,653.49 $22,114.92 $26,744.44 Three 4 yd. $4,591.62 $10,218.33 $15,476.63 $20,927.61 $26,815.13 $33,575.76 $40,506.02

One 6 yd. $2,085.09 $4,772.56 $7,297.84 $9,915.85 $12,742.24 $15,985.76 $19,450.66 Two 6 yd. $4,466.35 $10,027.24 $15,233.13 $20,629.93 $26,458.19 $33,149.25 $40,068.36

Table 4

COMMERCIAL AND MULTIFAMILY SOLID WASTE CART RATES
The following rates apply to multifamily solid waste carts that are used in common areas and/or enclosures throughout the mul tifamily property. For carts that are assigned to, and serving a single, specific, multifamily unit, see the rates in Table 1.

1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $63.88 $127.74 $191.61 $255.51 $319.38 $383.24 $447.09 65 gallon $128.03 $255.99 $383.99 $512.05 $640.05 $768.09 $896.13 95 gallon $191.72 $383.43 $575.14 $766.88 $958.58 $1,150.32 $1,342.07

ATTACHMENT 1

Collection Rates Effective January 1, 2027

5 COMPACTOR, ROLL OFF BOX AND TEMPORARY BIN RATES
Table 5
RATES FOR COMMERCIAL AND MULTIFAMILY COMPACTOR SERVICE – LESS THAN 6 CUBIC YARDS Compacted Rate Per Cubic Yard = $173.44

To calculate rate per month = [(rate per compacted cubic yard x size of compactor x # of pick-ups per week x 52 weeks)/12 months]

Table 6
RATES FOR ROLL OFF SERVICE – 10 CUBIC YARD BOXES AND LARGER (UNCOMPACTED) Uncompacted Rate per Cubic Yard $46.42

SIZE OF ROLL OFF (CUBIC YARDS) RATE PER SERVICE
10 $464.20
15 $696.30
20 $928.40
25 $1,160.50
30 $1,392.60
40 $1,856.80

To calculate rate per month: [(Uncompacted rate per cubic yard x size of roll off box x number of pickups per week x 52 weeks )/12 months] To calculate rate per service: size of roll off box x uncompacted rate per cubic yard

Table 7
RATES FOR ROLL OFF SERVICE FOR COMPACTORS – 6 CUBIC YARDS AND LARGER Compacted Rate Per Cubic Yard $173.44

SIZE OF COMPACTOR
(CUBIC YARDS) RATE PER MONTH (1X/WEEK SERVICE) PER SERVICE 6 $4,509.44 $1,040.64
10 $7,515.73 $1,734.40
15 $11,273.60 $2,601.60
20 $15,031.47 $3,468.80
25 $18,789.33 $4,336.00
30 $22,547.20 $5,203.20

To calculate rate per month: [(Compacted rate per cubic yard x size of compactor x number of pickups per week x 52 weeks)/12 months] To calculate rate per service: size of compactor x compacted rate per cubic yard

ATTACHMENT 1

Collection Rates Effective January 1, 2027

6 Table 8

RATES FOR SERVICE FOR TEMPORARY BINS FOR SOLID WASTE

TEMPORARY BIN SIZES RATE PER MONTH

1.5 cubic yards $240.60

2.0 cubic yards $240.60

3.0 cubic yards $287.02

4.0 cubic yards $333.42

6.0 cubic yards $426.27
Cost Per Cubic Yard $46.43

Table 9

RATES FOR ROLL OFF BOXES CONTAINING SOURCE SEPARATED RECYCLABLE MATERIALS

10 CUBIC YARDS RATE PER SERVICE
Asphalt $278.89
Concrete $332.00
Dirt $398.42
20 CUBIC YARDS RATE PER SERVICE
Clean Wood $265.61
Yard Trimmings $451.55
30 CUBIC YARDS RATE PER SERVICE
Metal $0.00
Clean Wood $332.00
Yard Trimmings $584.35

OTHER RATE PER SERVICE
Manure $265.61
Pomace $265.61
Dry Wall $265.61

Table 10

RATES FOR ROLL OFF BOXES CONTAINING SOURCE SEPARATED CARPET FOR RECYCLING (Rates apply to residential, commercial and multifamily carpet collection service)

ROLL OFF BOX SIZE RATE PER SERVICE
20 Cubic Yards $401.32
30 Cubic Yards $536.81
40 Cubic Yards $672.28

ATTACHMENT 1

Collection Rates Effective January 1, 2027

7 RATES FOR COMMERCIAL, MULTIFAMILY AND SPECIAL EVENT COMPOSTABLES COLLECTION Table 11

MONTHLY RATES FOR COMMERCIAL FOOD SCRAP COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $28.64 $47.81 $66.97 $86.14 $105.30 $124.46 $143.62 65 gallon $45.99 $82.49 $119.00 $155.52 $192.02 $228.54 $265.05 95 gallon $63.23 $116.99 $170.75 $224.51 $278.26 $332.02 $385.78 1 Cubic Yard $122.72 $244.53 $360.27 $479.49 $606.66 $749.72 $892.78 2 Cubic Yards $233.67 $475.90 $705.98 $943.02 $1,195.96 $1,480.68 $1,765.41

Table 12

MONTHLY RATES FOR MULTIFAMILY FOOD SCRAP COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $36.95 $64.41 $91.88 $119.35 $146.81 $174.28 $201.74 65 gallon $54.29 $99.09 $143.90 $188.72 $233.53 $278.35 $323.17 95 gallon $71.54 $133.59 $195.65 $257.71 $319.77 $381.83 $443.90 1 Cubic Yard $131.02 $261.13 $385.18 $512.70 $648.17 $799.53 $950.90 2 Cubic Yards $241.97 $492.50 $730.88 $976.23 $1,237.47 $1,530.50 $1,823.52

Table 13

MONTHLY RATES FOR COMMERCIAL PACKAGED ORGANICS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $29.73 $49.98 $70.23 $90.48 $110.73 $130.98 $151.23 65 gallon $48.01 $86.52 $125.05 $163.58 $202.11 $240.64 $279.17 95 gallon $66.18 $122.89 $179.59 $236.30 $293.00 $349.71 $406.42 1 Cubic Yard $128.92 $256.94 $378.89 $504.32 $637.69 $786.96 $936.23 2 Cubic Yards $246.08 $500.72 $743.21 $992.68 $1,258.03 $1,555.16 $1,852.30

ATTACHMENT 1

Collection Rates Effective January 1, 2027

8 Table 14

MONTHLY RATES FOR MULTIFAMILY PACKAGED ORGANICS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $38.03 $66.58 $95.13 $123.69 $152.24 $180.79 $209.34 65 gallon $56.31 $103.13 $149.95 $196.79 $243.62 $290.45 $337.29 95 gallon $74.49 $139.49 $204.50 $269.51 $334.51 $399.52 $464.53 1 Cubic Yard $137.23 $273.55 $403.80 $537.53 $679.20 $836.77 $994.34 2 Cubic Yards $254.38 $517.33 $768.12 $1,025.88 $1,299.54 $1,604.97 $1,910.41

Table 15

MONTHLY RATES FOR COMMERCIAL YARD TRIMMINGS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $12.19 $16.95 $21.72 $26.48 $31.24 $36.01 $40.77 65 gallon $15.08 $22.72 $30.37 $38.02 $45.66 $53.31 $60.95 95 gallon $17.96 $28.49 $39.02 $49.55 $60.08 $70.61 $81.14 1 Cubic Yard $20.62 $41.25 $61.87 $82.49 $103.11 $123.74 $144.36 2 Cubic Yards $39.85 $79.69 $119.54 $159.39 $199.24 $239.08 $278.93 3 Cubic Yards $59.07 $118.14 $177.21 $236.29 $295.36 $354.43 $413.50 4 Cubic Yards $78.30 $156.59 $234.89 $313.18 $391.48 $469.77 $548.07 6 Cubic Yards $116.74 $233.49 $350.23 $466.98 $583.72 $700.46 $817.21

Table 16

MONTHLY RATES FOR MULTIFAMILY YARD TRIMMINGS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $20.49 $33.56 $46.62 $59.69 $72.75 $85.82 $98.88 65 gallon $23.38 $39.33 $55.27 $71.22 $87.17 $103.12 $119.07 95 gallon $26.26 $45.09 $63.93 $82.76 $101.59 $120.42 $139.25 1 Cubic Yard $28.92 $57.85 $86.77 $115.70 $144.62 $173.55 $202.47 2 Cubic Yards $48.15 $96.30 $144.45 $192.60 $240.75 $288.89 $337.04 3 Cubic Yards $67.37 $134.75 $202.12 $269.49 $336.87 $404.24 $471.61 4 Cubic Yards $86.60 $173.20 $259.79 $346.39 $432.99 $519.59 $606.18 6 Cubic Yards $125.05 $250.09 $375.14 $500.18 $625.23 $750.28 $875.32

ATTACHMENT 1

Collection Rates Effective January 1, 2027

9 Table 17
SPECIAL EVENT FOOD SCRAP COLLECTION – RATE PER CONTAINER PER SERVICE

35-gallon Food Scrap Cart $15.27
65-gallon Food Scrap Cart $22.87
95-gallon Food Scrap Cart $30.49

1.5 Cubic Yards Food Scrap Bin $164.85
2 Cubic Yards Food Scrap Bin $186.98
3 Cubic Yards Food Scrap Bin $231.31
4 Cubic Yards Food Scrap Bin $275.64
6 Cubic Yards Food Scrap Bin $365.67

Table 18

FOOD SCRAP COMPACTOR SERVICE

Cost Per Yard (Compacted) $97.76
COMPACTORS (CUBIC YARDS) PER MONTH/1X

WEEK PER SERVICE
6 $2,541.76 $586.56
10 $4,236.27 $977.60
15 $6,354.40 $1,466.40
20 $8,472.53 $1,955.20
25 $10,590.67 $2,444.00
30 $12,708.80 $2,932.80

ATTACHMENT 1

Collection Rates Effective January 1, 2027

10 Table 19
RATES PER SERVICE FOR SPLIT 20 CUBIC YARD ROLL OFF BOXES

CONTAINING TWO SOURCE SEPARATED RECYCLABLE MATERIALS

MATERIALS (TWO PER SPLIT BOX) RATE PER SERVICE
MSW & Clean Wood $747.99
MSW & Yard Trimmings $839.29
MSW & Dry Wall $747.99
MSW & Metal $617.61
MSW & Cardboard $617.61
MSW & Mixed Recyclable Materials $617.61
Clean Wood & Yard Trimmings $352.07
Clean Wood & Dry Wall $260.78
Clean Wood & Metal $130.40
Clean Wood & Cardboard $130.40
Clean Wood & Mixed Recyclable Materials $130.40
Yard Trimmings & Dry Wall $352.07
Yard Trimmings & Metal $221.68
Yard Trimmings & Cardboard $221.68
Yard Trimmings and Mixed Recyclable Materials $221.68
Dry Wall & Metal $130.40
Dry Wall & Cardboard $130.40
Dry Wall & Mixed Recyclable Materials $130.40
Metal & Cardboard No Charge
Metal & Mixed Recyclable Materials No Charge
Cardboard & Mixed Recyclable Materials No Charge

ATTACHMENT 1

Collection Rates Effective January 1, 2027

11 Table 20

RATES FOR MISCELLANEOUS SERVICES

RESIDENTIAL
Additional Carts (Cost/Cart/Month)
RATE
Solid Waste Provided at monthly rate in Table 1 multiplied by number of carts
RECYCLING (AFTER 4-35 GAL OR 2-95 GAL CARTS INCLUDED IN BASE RESIDENTIAL RATE) RATE 20 gallon $6.88
35 gallon $6.88
65 gallon $6.88
95 gallon $6.88
YARDWASTE/FOOD (AFTER 4-35 GAL OR 2-95 GAL CARTS IN BASE RESIDENTIAL RATE) RATE 20 gallon $6.88
35 gallon $6.88
65 gallon $6.88
95 gallon $6.88

SPECIAL SERVICES (COST PER SERVICE) RATE
Bulky Items: large non-metal furniture that cannot fit in standard carts/bins & are not accepted in City’s Recycle More Program e.g., sofas, wood furniture, etc. ($/service up to 4 bulky items/service) $75.63
Each bulky item over 4 bulky items
($/Item - excluding e-waste & cardboard) $30.51
Cardboard and single stream recyclables No Charge
E-Waste (CRTs/LCDs), Metal Items and Cooking Oil No Charge EXTRA SERVICE ($/BIN/SERVICE) RATE
On day of service (Monday-Friday) up to 9 30-gal. bags or up to 9 30-gal. cans $12.79 /each barrel or bag
On day of service (Monday-Friday) 10 or more 30-gal. bags or cans $61.78/yard Not on day of service (Monday-Friday) up to 9 30-gal. bags or cans $12.79/barrel or bag + $102.09 trip charge Not on day of service (Monday-Friday)
10 or more 30-gal. bags or cans $61.78/yard + $102.09 trip charge Not on day of service (Saturday, Sunday)
up to 9 30-gal. bags or cans $12.79/barrel + $295.06 trip charge Not on day of service (Saturday, Sunday)
10 or more 30-gal. bags or cans $61.78/yard + $295.06 trip charge

BACKYARD SERVICE
(INCLUDES SOLID WASTE, RECYCLING, YARDWASTE/FOODSCRAPS - COST/MONTH) RATE
5-600 feet from curb to backyard cart location $46.11
601 feet or more from curb to backyard cart location $57.03 With letter from physician indicating resident is physically unable and/or advised not to wheel cart(s) to the curb
No Charge

COMMERCIAL & MULTI-FAMILY RATE
Bulky Items: large non-metal furniture that cannot fit in standard carts/bins & are not accepted in City’s Recycle More Program e.g., sofas, wood furniture, etc. ($/service up to 4 bulky items/service) $151.23
Each bulky item over 4 bulky items
($/Item – excluding e-waste) $30.51
Cardboard and single stream recyclables No Charge
Electronic Waste (CRTs/LCDs), Metal Items and Cooking Oil No Charge Pallets (Up to 10 pallets) $151.23

ATTACHMENT 1

Collection Rates Effective January 1, 2027

12 Table 20, continued

RATES FOR MISCELLANEOUS SERVICES

EXTRA SERVICE (COST/CART/SERVICE AND COST/BIN/SERVICE) RATE 35 gallon $30.51
65 gallon $45.76
95 gallon $60.97

1.5 cubic yards $329.66
2 cubic yards $373.98
3 cubic yards $462.62
4 cubic yards $551.25
6 cubic yards $731.35

MISCELLANEOUS RATE
Bin Cleaning/Bin Exchange ($/Bin/Service) $412.71
Heavy Waste (Rocks, dirt or other materials in bins or carts that exceed manufacturer’s maximum weight for container)
Cost / collection
$183.03
Hourly labor charge (for 2 persons) for on-site transfer of solid waste/materials from smaller exterior collection containers to larger exterior collection container(s)
$216.66
Locking Bin or Key Fee (if bin must be unlocked prior to service or if key must be used to access container(s)) ($/month) $15.27

RECYCLING ($/Service) RATE
Single Stream Recyclables (less than 10 cubic yard) No Charge Source Separated Recyclables (less than 10 cubic yard) No Charge Yard Trimmings (less than 10 cubic yard) No Charge

SATURDAY, SUNDAY SERVICE
(Cost/month for 1x/week solid waste service)
RATE
35 gallon $229.18
65 gallon $229.18
95 gallon $229.18

TRIP CHARGES for return to collect containers not available/ accessible for pickup or for a one-time collection on a special (non-regular route) day (Cost/Trip)

up to 35 gallon $102.12
35 gallon – 6 cubic yards $196.70

ATTACHMENT 1

Collection Rates Effective January 1, 2027

13 Table 20, continued

RATES FOR MISCELLANEOUS SERVICES

ROLL OFF/COMPACTOR/TEMPORARY BINS RATE
Overweight Surcharge (10 cubic yards and more) if roll off box or compactor weight causes collection truck to exceed legal highway weight limit established by State of California. Cost of labor and equipment to empty the excess into another container.

Trip charge ($327.78) plus cost to bring in
equipment capable of removing such
materials plus $129.76 per ton
Sealed watertight roll off boxes (for wet materials such as pomace) Additional cost/ service for special sealed box and added labor $68.93 Demurrage for non-removal after 3 days (Cost/Bin/Day)
$40.72
Trip Charge - Move/Relocate Box
(Cost/Box/ Service) $327.78
Rental Fee (Cost/day) $40.72
Temporary Bins (Cost/5 days)
2 cubic yards $320.12
3 cubic yards $381.90
4 cubic yards $443.63

OTHER FEES RATE
City Directed Spill Clean Up
(waste around overflowing bins/carts after 2 warnings
and direction from City)
$547.62
Contaminated Recycling Charges (materials containing 5% or more contamination that must be disposed as solid waste)

Contaminated residential recyclable materials, yard trimmings, and co-collected food scraps/yard trimmings

35 gallon $30.51
65 gallon $45.76
95 gallon $60.97
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in carts
Rates in Table 4 apply
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in bins

1.5 cubic yards $329.66
2 cubic yards $373.98
3 cubic yards $462.62
4 cubic yards $551.25
6 cubic yards $731.35
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in roll off boxes Rates in Table 6 apply
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in compactors
Rates in Tables 5 and 7 apply

ATTACHMENT 1

Collection Rates Effective January 1, 2028

1 Table 20, continued

RATES FOR MISCELLANEOUS SERVICES

COMPLIANCE FINES
Fines are charged for violations occurring within a 12 month period

RATE
First violation within a 12 month period
Second violation within a 12 month
period
Third violation or more within a 12
month period
$100
$200
$500

DEPOSITS
Residential Service and Commercial Cart Service: One-time deposit to initiate service, refundable after 12 months with 1% interest for customer in good standing

RATE
Deposit for Commercial Cart Service $80.00
Deposit for Residential Service $40.00
Residential Cart Redelivery Charge $25.00
Deposit for Commercial Bins Cost of 1 month’s service refundable after 12 months with 1% interest for customer in good
standing
Deposit for Roll Off/Compactor Service
(Applies to new customers – deposit applied to
cost of first service)
RATE
Solid Waste 50% of service
Recyclable Materials 50% of service

ATTACHMENT 1

Collection Rates Effective January 1, 2028

2 RESIDENTIAL AND MULTIFAMILY
Residential monthly rates include weekly collection of solid waste, recyclable materials and co-collected yard trimmings and food scraps.

Residential rates include one solid waste cart of the selected size and up to four 35 -gallon carts for recyclable materials and up to four 35 -gallon carts for yard trimmings/food scraps OR up to two 95 -gallon carts for recyclable materials and up to two 95 -gallon carts for yard trimmings/food scraps. These rates apply to single-family residences, duplexes, triplexes and multifamily units that have individual weekly cart service for each unit. For carts used in common multifamily areas and/or enclosures (and not serving a single, specific multifamily unit) see the rates in Table 4.

Table 1

RESIDENTIAL AND MULTIFAMILY CART RATES FOR WEEKLY SERVICE TO

INDIVIDUAL HOMES AND INDIVIDUAL MULTIFAMILY UNITS

COST PER MONTH
20 gallon $43.88
35 gallon $55.02
65 gallon $84.38
95 gallon $129.76

ATTACHMENT 1

Collection Rates Effective January 1, 2028

3 Table 2

COMMERCIAL AND MULTIFAMILY RATES

MONTHLY RATES FOR BINS PROVIDED BY NAPA RECYCLING AND WASTE SERVICES, LLC TO CUSTOMERS Number of Collections Per Week

BIN SIZE (CUBIC
YARDS) 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK One 1.5 yd $667.44 $1,397.90 $2,081.85 $2,790.86 $3,557.17 $4,438.24 $5,319.31 Two 1.5 yd. $1,422.32 $3,019.49 $4,496.80 $6,028.15 $7,683.50 $9,586.51 $11,489.54 Three 1.5 yd $2,113.72 $4,487.21 $6,682.74 $8,958.54 $11,418.48 $14,246.69 $17,074.88 Four 1.5 yd $2,844.67 $6,038.91 $8,993.52 $12,056.33 $15,366.88 $19,173.05 $22,979.22

One 2 yd. $858.04 $1,827.44 $2,738.66 $3,683.25 $4,703.96 $5,876.92 $7,049.87 Two 2 yd. $1,827.66 $3,947.28 $5,915.44 $7,955.78 $10,160.61 $12,694.13 $15,227.65 Three 2 yd. $2,640.00 $5,701.54 $8,544.57 $11,491.76 $14,676.34 $18,335.96 $21,995.61 Four 2 yd. $3,553.78 $7,675.19 $11,502.33 $15,469.62 $19,756.63 $24,683.04 $29,609.46

One 3 yd. $1,258.15 $2,728.51 $4,095.06 $5,511.72 $7,042.42 $8,801.19 $10,559.97 Two 3 yd. $2,591.85 $5,620.70 $8,435.86 $11,354.14 $14,507.38 $18,130.59 $21,753.79 Three 3 yd. $3,925.51 $8,512.88 $12,776.63 $17,196.61 $21,972.36 $27,459.89 $32,947.43

One 4 yd. $1,633.52 $3,587.53 $5,408.69 $7,296.59 $9,336.05 $11,678.67 $14,021.29 Two 4 yd. $3,364.98 $7,390.40 $11,141.94 $15,030.96 $19,232.23 $24,058.11 $28,884.00 Three 4 yd. $5,096.47 $11,193.16 $16,875.14 $22,765.32 $29,128.42 $36,437.45 $43,746.50

One 6 yd. $2,431.25 $5,359.65 $8,090.90 $10,922.31 $13,980.90 $17,493.82 $21,006.71 Two 6 yd. $5,008.42 $11,040.85 $16,667.31 $22,499.94 $28,800.65 $36,037.23 $43,273.83

ATTACHMENT 1

Collection Rates Effective January 1, 2028

4 Table 3

MONTHLY RATES FOR CUSTOMER OWNED BINS
Number of Collections Per Week

BIN SIZE (CUBIC
YARDS) 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK One 1.5 yd $571.89 $1,288.60 $1,970.46 $2,677.30 $3,440.44 $4,316.24 $5,319.31 Two 1.5 yd. $1,319.18 $2,901.39 $4,376.45 $5,905.53 $7,557.38 $9,454.69 $11,489.54 Three 1.5 yd $2,011.52 $4,370.32 $6,563.51 $8,837.02 $11,293.53 $14,116.08 $17,074.88 Four 1.5 yd $2,741.52 $5,920.89 $8,873.25 $11,933.72 $15,240.85 $19,041.19 $22,979.22

One 2 yd. $762.58 $1,718.14 $2,627.23 $3,569.71 $4,587.26 $5,754.90 $7,049.87 Two 2 yd. $1,724.53 $3,829.23 $5,795.15 $7,833.15 $10,034.56 $12,562.51 $15,227.65 Three 2 yd. $2,540.65 $5,587.93 $8,428.72 $11,373.63 $14,554.91 $18,209.06 $21,995.61 Four 2 yd. $3,453.54 $7,560.44 $11,385.36 $15,350.34 $19,634.05 $24,554.90 $29,609.46

One 3 yd. $1,125.98 $2,577.18 $3,940.84 $5,354.54 $6,880.84 $8,632.33 $10,559.97 Two 3 yd. $2,455.63 $5,464.89 $8,435.86 $11,192.25 $14,340.95 $17,956.56 $21,753.79 Three 3 yd. $3,788.00 $8,355.55 $12,616.27 $17,033.12 $21,804.33 $27,284.25 $32,947.43

One 4 yd. $1,501.30 $3,436.25 $5,254.44 $7,139.39 $9,174.43 $11,509.77 $14,021.29 Two 4 yd. $3,228.79 $7,234.53 $10,983.06 $14,869.03 $19,065.77 $23,884.11 $28,884.00 Three 4 yd. $4,958.95 $11,035.80 $16,714.76 $22,601.82 $28,960.34 $36,261.82 $43,746.50

One 6 yd. $2,251.90 $5,154.36 $7,881.67 $10,709.12 $13,761.62 $17,264.62 $21,006.71 Two 6 yd. $4,823.66 $10,829.42 $16,451.78 $22,280.32 $28,574.85 $35,801.19 $43,273.83

Table 4

COMMERCIAL AND MULTIFAMILY SOLID WASTE CART RATES
The following rates apply to multifamily solid waste carts that are used in common areas and/or enclosures throughout the mul tifamily property. For carts that are assigned to, and serving a single, specific, multifamily unit, see the rates in Table 1.

1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $68.99 $137.96 $206.94 $275.95 $344.93 $413.90 $482.86 65 gallon $138.27 $276.47 $414.71 $553.01 $691.25 $829.54 $967.82 95 gallon $207.06 $414.10 $621.15 $828.23 $1,035.27 $1,242.35 $1,449.44

ATTACHMENT 1

Collection Rates Effective January 1, 2028

5 COMPACTOR, ROLL OFF BOX AND TEMPORARY BIN RATES
Table 5
RATES FOR COMMERCIAL AND MULTIFAMILY COMPACTOR SERVICE – LESS THAN 6 CUBIC YARDS Compacted Rate Per Cubic Yard = $187.31

To calculate rate per month = [(rate per compacted cubic yard x size of compactor x # of pick-ups per week x 52 weeks)/12 months]

Table 6
RATES FOR ROLL OFF SERVICE – 10 CUBIC YARD BOXES AND LARGER (UNCOMPACTED) Uncompacted Rate per Cubic Yard $46.42

SIZE OF ROLL OFF (CUBIC YARDS) RATE PER SERVICE
10 $464.20
15 $696.30
20 $928.40
25 $1,160.50
30 $1,392.60
40 $1,856.80

To calculate rate per month: [(Uncompacted rate per cubic yard x size of roll off box x number of pickups per week x 52 weeks )/12 months] To calculate rate per service: size of roll off box x uncompacted rate per cubic yard

Table 7
RATES FOR ROLL OFF SERVICE FOR COMPACTORS – 6 CUBIC YARDS AND LARGER Compacted Rate Per Cubic Yard $187.32

SIZE OF COMPACTOR
(CUBIC YARDS) RATE PER MONTH (1X/WEEK SERVICE) PER SERVICE 6 $4,870.20 $1,123.89
10 $8,116.99 $1,873.15
15 $12,175.49 $2,809.73
20 $16,233.98 $3,746.30
25 $20,292.48 $4,682.88
30 $24,350.98 $5,619.46

To calculate rate per month: [(Compacted rate per cubic yard x size of compactor x number of pickups per week x 52 weeks)/12 months] To calculate rate per service: size of compactor x compacted rate per cubic yard

ATTACHMENT 1

Collection Rates Effective January 1, 2028

6 Table 8

RATES FOR SERVICE FOR TEMPORARY BINS FOR SOLID WASTE

TEMPORARY BIN SIZES RATE PER MONTH

1.5 cubic yards $240.60

2.0 cubic yards $240.60

3.0 cubic yards $287.02

4.0 cubic yards $333.42

6.0 cubic yards $426.27
Cost Per Cubic Yard $46.43

Table 9

RATES FOR ROLL OFF BOXES CONTAINING SOURCE SEPARATED RECYCLABLE MATERIALS

10 CUBIC YARDS RATE PER SERVICE
Asphalt $301.20
Concrete $358.56
Dirt $430.29
20 CUBIC YARDS RATE PER SERVICE
Clean Wood $286.85
Yard Trimmings $487.68
30 CUBIC YARDS RATE PER SERVICE
Metal $0.00
Clean Wood $358.56
Yard Trimmings $631.10

OTHER RATE PER SERVICE
Manure $286.85
Pomace $286.85
Dry Wall $286.85

Table 10

RATES FOR ROLL OFF BOXES CONTAINING SOURCE SEPARATED CARPET FOR RECYCLING (Rates apply to residential, commercial and multifamily carpet collection service)

ROLL OFF BOX SIZE RATE PER SERVICE
20 Cubic Yards $433.43
30 Cubic Yards $579.75
40 Cubic Yards $726.06

ATTACHMENT 1

Collection Rates Effective January 1, 2028

7 RATES FOR COMMERCIAL, MULTIFAMILY AND SPECIAL EVENT COMPOSTABLES COLLECTION Table 11

MONTHLY RATES FOR COMMERCIAL FOOD SCRAP COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $27.15 $40.91 $54.67 $68.43 $82.19 $95.94 $109.70 65 gallon $38.40 $63.39 $88.40 $113.40 $138.41 $163.41 $188.42 95 gallon $49.59 $85.79 $121.99 $158.19 $194.38 $230.59 $266.79 1 Cubic Yard $91.02 $170.25 $246.44 $324.37 $406.28 $496.13 $585.99 2 Cubic Yards $165.60 $322.18 $472.69 $626.69 $788.63 $966.46 $1,144.29

Table 12

MONTHLY RATES FOR MULTIFAMILY FOOD SCRAP COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $38.61 $63.82 $89.04 $114.25 $139.47 $164.68 $189.89 65 gallon $49.85 $86.31 $122.77 $159.23 $195.69 $232.15 $268.61 95 gallon $61.05 $108.70 $156.36 $204.02 $251.67 $299.33 $346.98 1 Cubic Yard $102.47 $193.16 $280.81 $370.20 $463.56 $564.87 $666.18 2 Cubic Yards $177.05 $345.09 $507.06 $672.51 $845.91 $1,035.20 $1,224.49

Table 13

MONTHLY RATES FOR COMMERCIAL PACKAGED ORGANICS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $28.66 $43.93 $59.20 $74.47 $89.74 $105.01 $120.28 65 gallon $41.21 $69.01 $96.82 $124.64 $152.44 $180.26 $208.07 95 gallon $53.70 $94.00 $134.30 $174.60 $214.90 $255.21 $295.51 1 Cubic Yard $99.66 $187.52 $272.36 $358.93 $449.48 $547.97 $646.46 2 Cubic Yards $182.87 $356.74 $524.53 $695.80 $875.02 $1,070.13 $1,265.24

ATTACHMENT 1

Collection Rates Effective January 1, 2028

8 Table 14

MONTHLY RATES FOR MULTIFAMILY PACKAGED ORGANICS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $40.12 $66.85 $93.57 $120.30 $147.03 $173.75 $200.48 65 gallon $52.66 $91.92 $131.19 $170.46 $209.73 $249.00 $288.27 95 gallon $65.15 $116.91 $168.67 $220.43 $272.19 $323.95 $375.71 1 Cubic Yard $111.11 $210.44 $306.73 $404.76 $506.76 $616.71 $726.66 2 Cubic Yards $194.33 $379.65 $558.90 $741.63 $932.30 $1,138.87 $1,345.44

Table 15

MONTHLY RATES FOR COMMERCIAL YARD TRIMMINGS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $17.12 $23.68 $30.24 $36.79 $43.35 $49.91 $56.47 65 gallon $21.14 $31.71 $42.28 $52.85 $63.42 $73.99 $84.56 95 gallon $25.15 $39.74 $54.32 $68.91 $83.49 $98.08 $112.66 1 Cubic Yard $28.63 $57.27 $85.90 $114.54 $143.17 $171.80 $200.44 2 Cubic Yards $55.39 $110.79 $166.18 $221.58 $276.97 $332.37 $387.76 3 Cubic Yards $82.15 $164.31 $246.46 $328.62 $410.77 $492.93 $575.08 4 Cubic Yards $108.91 $217.83 $326.74 $435.66 $544.57 $653.49 $762.40 6 Cubic Yards $162.43 $324.87 $487.30 $649.74 $812.17 $974.61 $1,137.04

Table 16

MONTHLY RATES FOR MULTIFAMILY YARD TRIMMINGS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $28.58 $46.59 $64.61 $82.62 $100.64 $118.65 $136.66 65 gallon $32.59 $54.62 $76.65 $98.68 $120.71 $142.73 $164.76 95 gallon $36.61 $62.65 $88.69 $114.73 $140.78 $166.82 $192.86 1 Cubic Yard $40.09 $80.18 $120.27 $160.36 $200.45 $240.55 $280.64 2 Cubic Yards $66.85 $133.70 $200.55 $267.40 $334.26 $401.11 $467.96 3 Cubic Yards $93.61 $187.22 $280.83 $374.44 $468.06 $561.67 $655.28 4 Cubic Yards $120.37 $240.74 $361.11 $481.49 $601.86 $722.23 $842.60 6 Cubic Yards $173.89 $347.78 $521.67 $695.57 $869.46 $1,043.35 $1,217.24

ATTACHMENT 1

Collection Rates Effective January 1, 2028

9 Table 17
SPECIAL EVENT FOOD SCRAP COLLECTION – RATE PER CONTAINER PER SERVICE

35-gallon Food Scrap Cart $16.49
65-gallon Food Scrap Cart $24.70
95-gallon Food Scrap Cart $32.93

1.5 Cubic Yards Food Scrap Bin $178.04
2 Cubic Yards Food Scrap Bin $201.94
3 Cubic Yards Food Scrap Bin $249.81
4 Cubic Yards Food Scrap Bin $297.69
6 Cubic Yards Food Scrap Bin $394.92

Table 18

FOOD SCRAP COMPACTOR SERVICE

Cost Per Yard (Compacted) $97.76
COMPACTORS (CUBIC YARDS) PER MONTH/1X

WEEK PER SERVICE
6 $2,541.76 $586.56
10 $4,236.27 $977.60
15 $6,354.40 $1,466.40
20 $8,472.53 $1,955.20
25 $10,590.67 $2,444.00
30 $12,708.80 $2,932.80

ATTACHMENT 1

Collection Rates Effective January 1, 2028

10 Table 19
RATES PER SERVICE FOR SPLIT 20 CUBIC YARD ROLL OFF BOXES

CONTAINING TWO SOURCE SEPARATED RECYCLABLE MATERIALS

MATERIALS (TWO PER SPLIT BOX) RATE PER SERVICE
MSW & Clean Wood $807.83
MSW & Yard Trimmings $906.43
MSW & Dry Wall $807.83
MSW & Metal $667.02
MSW & Cardboard $667.02
MSW & Mixed Recyclable Materials $667.02
Clean Wood & Yard Trimmings $380.24
Clean Wood & Dry Wall $281.64
Clean Wood & Metal $140.83
Clean Wood & Cardboard $140.83
Clean Wood & Mixed Recyclable Materials $140.83
Yard Trimmings & Dry Wall $380.24
Yard Trimmings & Metal $239.41
Yard Trimmings & Cardboard $239.41
Yard Trimmings and Mixed Recyclable Materials $239.41
Dry Wall & Metal $140.83
Dry Wall & Cardboard $140.83
Dry Wall & Mixed Recyclable Materials $140.83
Metal & Cardboard No Charge
Metal & Mixed Recyclable Materials No Charge
Cardboard & Mixed Recyclable Materials No Charge

ATTACHMENT 1

Collection Rates Effective January 1, 2028

11 Table 20

RATES FOR MISCELLANEOUS SERVICES

RESIDENTIAL
Additional Carts (Cost/Cart/Month)
RATE
Solid Waste Provided at monthly rate in Table 1 multiplied by number of carts
RECYCLING (AFTER 4-35 GAL OR 2-95 GAL CARTS INCLUDED IN BASE RESIDENTIAL RATE) RATE 20 gallon $7.43
35 gallon $7.43
65 gallon $7.43
95 gallon $7.43
YARDWASTE/FOOD (AFTER 4-35 GAL OR 2-95 GAL CARTS IN BASE RESIDENTIAL RATE) RATE 20 gallon $7.43
35 gallon $7.43
65 gallon $7.43
95 gallon $7.43

SPECIAL SERVICES (COST PER SERVICE) RATE
Bulky Items: large non-metal furniture that cannot fit in standard carts/bins & are not accepted in City’s Recycle More Program e.g., sofas, wood furniture, etc. ($/service up to 4 bulky items/service) $81.68
Each bulky item over 4 bulky items
($/Item - excluding e-waste & cardboard) $32.95
Cardboard and single stream recyclables No Charge
E-Waste (CRTs/LCDs), Metal Items and Cooking Oil No Charge EXTRA SERVICE ($/BIN/SERVICE) RATE
On day of service (Monday-Friday) up to 9 30-gal. bags or up to 9 30-gal. cans $13.81 /each barrel or bag
On day of service (Monday-Friday) 10 or more 30-gal. bags or cans $66.72/yard Not on day of service (Monday-Friday) up to 9 30-gal. bags or cans $13.81/barrel or bag + $110.26 trip charge Not on day of service (Monday-Friday)
10 or more 30-gal. bags or cans $66.72/yard + $110.26 trip charge Not on day of service (Saturday, Sunday)
up to 9 30-gal. bags or cans $13.81/barrel + $318.66 trip charge Not on day of service (Saturday, Sunday)
10 or more 30-gal. bags or cans $66.72/yard + $318.66 trip charge

BACKYARD SERVICE
(INCLUDES SOLID WASTE, RECYCLING, YARDWASTE/FOODSCRAPS - COST/MONTH) RATE
5-600 feet from curb to backyard cart location $49.80
601 feet or more from curb to backyard cart location $61.59 With letter from physician indicating resident is physically unable and/or advised not to wheel cart(s) to the curb
No Charge

COMMERCIAL & MULTI-FAMILY RATE
Bulky Items: large non-metal furniture that cannot fit in standard carts/bins & are not accepted in City’s Recycle More Program e.g., sofas, wood furniture, etc. ($/service up to 4 bulky items/service) $163.33
Each bulky item over 4 bulky items
($/Item – excluding e-waste) $25.68
Cardboard and single stream recyclables No Charge
Electronic Waste (CRTs/LCDs), Metal Items and Cooking Oil No Charge Pallets (Up to 10 pallets) $163.33

ATTACHMENT 1

Collection Rates Effective January 1, 2028

12 Table 20, continued

RATES FOR MISCELLANEOUS SERVICES

EXTRA SERVICE (COST/CART/SERVICE AND COST/BIN/SERVICE) RATE 35 gallon $32.95
65 gallon $49.42
95 gallon $65.85

1.5 cubic yards $356.03
2 cubic yards $403.90
3 cubic yards $499.63
4 cubic yards $595.35
6 cubic yards $789.86

MISCELLANEOUS RATE
Bin Cleaning/Bin Exchange ($/Bin/Service) $445.73
Heavy Waste (Rocks, dirt or other materials in bins or carts that exceed manufacturer’s maximum weight for container)
Cost / collection
$197.67
Hourly labor charge (for 2 persons) for on-site transfer of solid waste/materials from smaller exterior collection containers to larger exterior collection container(s)
$233.99
Locking Bin or Key Fee (if bin must be unlocked prior to service or if key must be used to access container(s)) ($/month) $16.49

RECYCLING ($/Service) RATE
Single Stream Recyclables (less than 10 cubic yard) No Charge Source Separated Recyclables (less than 10 cubic yard) No Charge Yard Trimmings (less than 10 cubic yard) No Charge

SATURDAY, SUNDAY SERVICE
(Cost/month for 1x/week solid waste service)
RATE
35 gallon $247.51
65 gallon $247.51
95 gallon $247.51

TRIP CHARGES for return to collect containers not available/ accessible for pickup or for a one-time collection on a special (non-regular route) day (Cost/Trip)

up to 35 gallon $110.29
35 gallon – 6 cubic yards $212.44

ATTACHMENT 1

Collection Rates Effective January 1, 2028

13 Table 20, continued

RATES FOR MISCELLANEOUS SERVICES

ROLL OFF/COMPACTOR/TEMPORARY BINS RATE
Overweight Surcharge (10 cubic yards and more) if roll off box or compactor weight causes collection truck to exceed legal highway weight limit established by State of California. Cost of labor and equipment to empty the excess into another container.

Trip charge ($354) plus cost to bring in
equipment capable of removing such
materials plus $140.14 per ton
Sealed watertight roll off boxes (for wet materials such as pomace) Additional cost/ service for special sealed box and added labor $74.44 Demurrage for non-removal after 3 days (Cost/Bin/Day)
$43.98
Trip Charge - Move/Relocate Box
(Cost/Box/ Service) $354.00
Rental Fee (Cost/day) $43.98
Temporary Bins (Cost/5 days)
2 cubic yards $345.73
3 cubic yards $412.45
4 cubic yards $479.12

OTHER FEES RATE
City Directed Spill Clean Up
(waste around overflowing bins/carts after 2 warnings
and direction from City)
$591.43
Contaminated Recycling Charges (materials containing 5% or more contamination that must be disposed as solid waste)

Contaminated residential recyclable materials, yard trimmings, and co-collected food scraps/yard trimmings

35 gallon $32.95
65 gallon $49.42
95 gallon $65.85
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in carts
Rates in Table 4 apply
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in bins

1.5 cubic yards $356.03
2 cubic yards $403.90
3 cubic yards $499.63
4 cubic yards $595.35
6 cubic yards $789.86
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in roll off boxes Rates in Table 6 apply
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in compactors
Rates in Tables 5 and 7 apply

ATTACHMENT 1

Collection Rates Effective January 1, 2029

1 Table 20, continued

RATES FOR MISCELLANEOUS SERVICES

COMPLIANCE FINES
Fines are charged for violations occurring within a 12 month period

RATE
First violation within a 12 month period
Second violation within a 12 month period
Third violation or more within a 12 month period
$100
$200
$500

DEPOSITS
Residential Service and Commercial Cart Service: One-time deposit to initiate service, refundable after 12 months with 1% interest for customer in good standing

RATE
Deposit for Commercial Cart Service $80.00
Deposit for Residential Service $40.00
Residential Cart Redelivery Charge $25.00
Deposit for Commercial Bins Cost of 1 month’s service refundable after 12 months with 1% interest for customer in good
standing
Deposit for Roll Off/Compactor Service
(Applies to new customers – deposit applied to
cost of first service)
RATE
Solid Waste 50% of service
Recyclable Materials 50% of service

ATTACHMENT 1

Collection Rates Effective January 1, 2029

2 RESIDENTIAL AND MULTIFAMILY
Residential monthly rates include weekly collection of solid waste, recyclable materials and co-collected yard trimmings and food scraps.

Residential rates include one solid waste cart of the selected size and up to four 35 -gallon carts for recyclable materials and up to four 35 -gallon carts for yard trimmings/food scraps OR up to two 95 -gallon carts for recyclable materials and up to two 95 -gallon carts for yard trimmings/food scraps. These rates apply to single-family residences, duplexes, triplexes and multifamily units that have individual weekly cart service for each unit. For carts used in common multifamily areas and/or enclosures (and not serving a single, specific multifamily unit) see the rates in Table 4.

Table 1

RESIDENTIAL AND MULTIFAMILY CART RATES FOR WEEKLY SERVICE TO

INDIVIDUAL HOMES AND INDIVIDUAL MULTIFAMILY UNITS

COST PER MONTH
20 gallon $46.51
35 gallon $58.32
65 gallon $89.44
95 gallon $137.55

ATTACHMENT 1

Collection Rates Effective January 1, 2029

3 Table 2

COMMERCIAL AND MULTIFAMILY RATES

MONTHLY RATES FOR BINS PROVIDED BY NAPA RECYCLING AND WASTE SERVICES, LLC TO CUSTOMERS Number of Collections Per Week

BIN SIZE (CUBIC
YARDS) 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK One 1.5 yd $707.49 $1,481.77 $2,206.76 $2,958.31 $3,770.60 $4,704.53 $5,638.47 Two 1.5 yd. $1,507.66 $3,200.66 $4,766.61 $6,389.84 $8,144.51 $10,161.70 $12,178.91 Three 1.5 yd $2,240.54 $4,756.44 $7,083.70 $9,496.05 $12,103.59 $15,101.49 $18,099.37 Four 1.5 yd $3,015.35 $6,401.24 $9,533.13 $12,779.71 $16,288.89 $20,323.43 $24,357.97

One 2 yd. $909.52 $1,937.09 $2,902.98 $3,904.25 $4,986.20 $6,229.54 $7,472.86 Two 2 yd. $1,937.32 $4,184.12 $6,270.37 $8,433.13 $10,770.25 $13,455.78 $16,141.31 Three 2 yd. $2,798.40 $6,043.63 $9,057.24 $12,181.27 $15,556.92 $19,436.12 $23,315.35 Four 2 yd. $3,767.01 $8,135.70 $12,192.47 $16,397.80 $20,942.03 $26,164.02 $31,386.03

One 3 yd. $1,333.64 $2,892.22 $4,340.76 $5,842.42 $7,464.97 $9,329.26 $11,193.57 Two 3 yd. $2,747.36 $5,957.94 $8,942.01 $12,035.39 $15,377.82 $19,218.43 $23,059.02 Three 3 yd. $4,161.04 $9,023.65 $13,543.23 $18,228.41 $23,290.70 $29,107.48 $34,924.28

One 4 yd. $1,731.53 $3,802.78 $5,733.21 $7,734.39 $9,896.21 $12,379.39 $14,862.57 Two 4 yd. $3,566.88 $7,833.82 $11,810.46 $15,932.82 $20,386.16 $25,501.60 $30,617.04 Three 4 yd. $5,402.26 $11,864.75 $17,887.65 $24,131.24 $30,876.13 $38,623.70 $46,371.29

One 6 yd. $2,577.13 $5,681.23 $8,576.35 $11,577.65 $14,819.75 $18,543.45 $22,267.11 Two 6 yd. $5,308.93 $11,703.30 $17,667.35 $23,849.94 $30,528.69 $38,199.46 $45,870.26

ATTACHMENT 1

Collection Rates Effective January 1, 2029

4 Table 3

MONTHLY RATES FOR CUSTOMER OWNED BINS
Number of Collections Per Week

BIN SIZE (CUBIC
YARDS) 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK One 1.5 yd $606.20 $1,365.92 $2,088.69 $2,837.94 $3,646.87 $4,575.21 $5,638.47 Two 1.5 yd. $1,398.33 $3,075.47 $4,639.04 $6,259.86 $8,010.82 $10,021.97 $12,178.91 Three 1.5 yd $2,132.21 $4,632.54 $6,957.32 $9,367.24 $11,971.14 $14,963.04 $18,099.37 Four 1.5 yd $2,906.01 $6,276.14 $9,405.65 $12,649.74 $16,155.30 $20,183.66 $24,357.97

One 2 yd. $808.33 $1,821.23 $2,784.86 $3,783.89 $4,862.50 $6,100.19 $7,472.86 Two 2 yd. $1,828.00 $4,058.98 $6,142.86 $8,303.14 $10,636.63 $13,316.26 $16,141.31 Three 2 yd. $2,693.09 $5,923.21 $8,934.44 $12,056.05 $15,428.20 $19,301.60 $23,315.35 Four 2 yd. $3,660.75 $8,014.07 $12,068.48 $16,271.36 $20,812.09 $26,028.19 $31,386.03

One 3 yd. $1,193.54 $2,731.81 $4,177.29 $5,675.81 $7,293.69 $9,150.27 $11,193.57 Two 3 yd. $2,602.97 $5,792.78 $8,942.01 $11,863.79 $15,201.41 $19,033.95 $23,059.02 Three 3 yd. $4,015.28 $8,856.88 $13,373.25 $18,055.11 $23,112.59 $28,921.31 $34,924.28

One 4 yd. $1,591.38 $3,642.43 $5,569.71 $7,567.75 $9,724.90 $12,200.36 $14,862.57 Two 4 yd. $3,422.52 $7,668.60 $11,642.04 $15,761.17 $20,209.72 $25,317.16 $30,617.04 Three 4 yd. $5,256.49 $11,697.95 $17,717.65 $23,957.93 $30,697.96 $38,437.53 $46,371.29

One 6 yd. $2,387.01 $5,463.62 $8,354.57 $11,351.67 $14,587.32 $18,300.50 $22,267.11 Two 6 yd. $5,113.08 $11,479.19 $17,438.89 $23,617.14 $30,289.34 $37,949.26 $45,870.26

Table 4

COMMERCIAL AND MULTIFAMILY SOLID WASTE CART RATES
The following rates apply to multifamily solid waste carts that are used in common areas and/or enclosures throughout the mul tifamily property. For carts that are assigned to, and serving a single, specific, multifamily unit, see the rates in Table 1.

1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $73.13 $146.24 $219.36 $292.51 $365.63 $438.73 $511.83 65 gallon $146.57 $293.06 $439.59 $586.19 $732.73 $879.31 $1,025.89 95 gallon $219.48 $438.95 $658.42 $877.92 $1,097.39 $1,316.89 $1,536.41

ATTACHMENT 1

Collection Rates Effective January 1, 2029

5 COMPACTOR, ROLL OFF BOX AND TEMPORARY BIN RATES
Table 5
RATES FOR COMMERCIAL AND MULTIFAMILY COMPACTOR SERVICE – LESS THAN 6 CUBIC YARDS Compacted Rate Per Cubic Yard = $198.55

To calculate rate per month = [(rate per compacted cubic yard x size of compactor x # of pick-ups per week x 52 weeks)/12 months]

Table 6
RATES FOR ROLL OFF SERVICE – 10 CUBIC YARD BOXES AND LARGER (UNCOMPACTED) Uncompacted Rate per Cubic Yard $46.42

SIZE OF ROLL OFF (CUBIC YARDS) RATE PER SERVICE
10 $464.20
15 $696.30
20 $928.40
25 $1,160.50
30 $1,392.60
40 $1,856.80

To calculate rate per month: [(Uncompacted rate per cubic yard x size of roll off box x number of pickups per week x 52 weeks )/12 months] To calculate rate per service: size of roll off box x uncompacted rate per cubic yard

Table 7
RATES FOR ROLL OFF SERVICE FOR COMPACTORS – 6 CUBIC YARDS AND LARGER Compacted Rate Per Cubic Yard $198.55

SIZE OF COMPACTOR
(CUBIC YARDS) RATE PER MONTH (1X/WEEK SERVICE) PER SERVICE 6 $5,162.41 $1,191.32
10 $8,604.01 $1,985.54
15 $12,906.02 $2,978.31
20 $17,208.02 $3,971.08
25 $21,510.03 $4,963.85
30 $25,812.03 $5,956.62

To calculate rate per month: [(Compacted rate per cubic yard x size of compactor x number of pickups per week x 52 weeks)/12 months] To calculate rate per service: size of compactor x compacted rate per cubic yard

ATTACHMENT 1

Collection Rates Effective January 1, 2029

6 Table 8

RATES FOR SERVICE FOR TEMPORARY BINS FOR SOLID WASTE

TEMPORARY BIN SIZES RATE PER MONTH

1.5 cubic yards $240.60

2.0 cubic yards $240.60

3.0 cubic yards $287.02

4.0 cubic yards $333.42

6.0 cubic yards $426.27
Cost Per Cubic Yard $46.43

Table 9

RATES FOR ROLL OFF BOXES CONTAINING SOURCE SEPARATED RECYCLABLE MATERIALS

10 CUBIC YARDS RATE PER SERVICE
Asphalt $325.29
Concrete $387.24
Dirt $464.71
20 CUBIC YARDS RATE PER SERVICE
Clean Wood $309.80
Yard Trimmings $526.69
30 CUBIC YARDS RATE PER SERVICE
Metal $0.00
Clean Wood $387.24
Yard Trimmings $681.58

OTHER RATE PER SERVICE
Manure $309.80
Pomace $309.80
Dry Wall $309.80

Table 10

RATES FOR ROLL OFF BOXES CONTAINING SOURCE SEPARATED CARPET FOR RECYCLING (Rates apply to residential, commercial and multifamily carpet collection service)

ROLL OFF BOX SIZE RATE PER SERVICE
20 Cubic Yards $459.44
30 Cubic Yards $614.54
40 Cubic Yards $769.62

ATTACHMENT 1

Collection Rates Effective January 1, 2029

7 RATES FOR COMMERCIAL, MULTIFAMILY AND SPECIAL EVENT COMPOSTABLES COLLECTION Table 11

MONTHLY RATES FOR COMMERCIAL FOOD SCRAP COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $25.36 $32.23 $39.10 $45.97 $52.84 $59.71 $66.58 65 gallon $30.60 $42.71 $54.82 $66.92 $79.03 $91.14 $103.25 95 gallon $35.84 $53.19 $70.53 $87.88 $105.22 $122.57 $139.92 1 Cubic Yard $58.86 $94.54 $130.22 $165.90 $201.58 $237.26 $272.94 2 Cubic Yards $97.78 $168.38 $238.98 $309.58 $380.18 $450.79 $521.39

Table 12

MONTHLY RATES FOR MULTIFAMILY FOOD SCRAP COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $40.19 $61.88 $83.57 $105.26 $126.95 $148.64 $170.33 65 gallon $45.42 $72.35 $99.28 $126.21 $153.14 $180.07 $207.00 95 gallon $50.66 $82.83 $115.00 $147.17 $179.33 $211.50 $243.67 1 Cubic Yard $73.68 $124.18 $174.68 $225.18 $275.69 $326.19 $376.69 2 Cubic Yards $112.60 $198.02 $283.45 $368.87 $454.30 $539.72 $625.14

Table 13

MONTHLY RATES FOR COMMERCIAL PACKAGED ORGANICS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $27.34 $36.18 $45.02 $53.86 $62.71 $71.55 $80.39 65 gallon $34.27 $50.04 $65.81 $81.58 $97.35 $113.13 $128.90 95 gallon $41.20 $63.90 $86.60 $109.30 $132.00 $154.70 $177.40 1 Cubic Yard $70.13 $117.09 $164.04 $210.99 $257.95 $304.90 $351.86 2 Cubic Yards $120.33 $213.48 $306.63 $399.78 $492.93 $586.08 $679.23

ATTACHMENT 1

Collection Rates Effective January 1, 2029

8 Table 14

MONTHLY RATES FOR MULTIFAMILY PACKAGED ORGANICS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $42.16 $65.82 $89.49 $113.15 $136.82 $160.48 $184.15 65 gallon $49.09 $79.68 $110.28 $140.87 $171.46 $202.06 $232.65 95 gallon $56.02 $93.54 $131.06 $168.59 $206.11 $243.64 $281.16 1 Cubic Yard $84.95 $146.73 $208.51 $270.28 $332.06 $393.84 $455.61 2 Cubic Yards $135.15 $243.12 $351.09 $459.07 $567.04 $675.01 $782.99

Table 15

MONTHLY RATES FOR COMMERCIAL YARD TRIMMINGS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $21.71 $28.58 $35.44 $42.31 $49.18 $56.05 $62.92 65 gallon $26.94 $39.05 $51.16 $63.27 $75.37 $87.48 $99.59 95 gallon $32.18 $49.53 $66.87 $84.22 $101.57 $118.91 $136.26 1 Cubic Yard $35.68 $71.36 $107.04 $142.72 $178.40 $214.08 $249.76 2 Cubic Yards $70.60 $141.20 $211.81 $282.41 $353.01 $423.61 $494.21 3 Cubic Yards $105.52 $211.05 $316.57 $422.10 $527.62 $633.14 $738.67 4 Cubic Yards $140.45 $280.89 $421.34 $561.78 $702.23 $842.68 $983.12 6 Cubic Yards $210.29 $420.58 $630.87 $841.16 $1,051.45 $1,261.74 $1,472.03

Table 16

MONTHLY RATES FOR MULTIFAMILY YARD TRIMMINGS COLLECTION

SIZE 1X/WEEK 2X/WEEK 3X/WEEK 4X/WEEK 5X/WEEK 6X/WEEK 7X/WEEK 35 gallon $36.53 $58.22 $79.91 $101.60 $123.29 $144.99 $166.68 65 gallon $41.77 $68.70 $95.63 $122.56 $149.49 $176.42 $203.34 95 gallon $47.00 $79.17 $111.34 $143.51 $175.68 $207.85 $240.01 1 Cubic Yard $50.50 $101.00 $151.51 $202.01 $252.51 $303.01 $353.51 2 Cubic Yards $85.42 $170.85 $256.27 $341.70 $427.12 $512.54 $597.97 3 Cubic Yards $120.35 $240.69 $361.04 $481.38 $601.73 $722.08 $842.42 4 Cubic Yards $155.27 $310.54 $465.80 $621.07 $776.34 $931.61 $1,086.88 6 Cubic Yards $225.11 $450.22 $675.34 $900.45 $1,125.56 $1,350.67 $1,575.78

ATTACHMENT 1

Collection Rates Effective January 1, 2029

9 Table 17
SPECIAL EVENT FOOD SCRAP COLLECTION – RATE PER CONTAINER PER SERVICE

35-gallon Food Scrap Cart $17.48
65-gallon Food Scrap Cart $26.18
95-gallon Food Scrap Cart $34.91

1.5 Cubic Yards Food Scrap Bin $188.72
2 Cubic Yards Food Scrap Bin $214.06
3 Cubic Yards Food Scrap Bin $264.80
4 Cubic Yards Food Scrap Bin $315.55
6 Cubic Yards Food Scrap Bin $418.62

Table 18

FOOD SCRAP COMPACTOR SERVICE

Cost Per Yard (Compacted) $97.76
COMPACTORS (CUBIC YARDS) PER MONTH/1X

WEEK PER SERVICE
6 $2,541.76 $586.56
10 $4,236.27 $977.60
15 $6,354.40 $1,466.40
20 $8,472.53 $1,955.20
25 $10,590.67 $2,444.00
30 $12,708.80 $2,932.80

ATTACHMENT 1

Collection Rates Effective January 1, 2029

10 Table 19
RATES PER SERVICE FOR SPLIT 20 CUBIC YARD ROLL OFF BOXES

CONTAINING TWO SOURCE SEPARATED RECYCLABLE MATERIALS

MATERIALS (TWO PER SPLIT BOX) RATE PER SERVICE
MSW & Clean Wood $856.30
MSW & Yard Trimmings $960.82
MSW & Dry Wall $856.30
MSW & Metal $707.04
MSW & Cardboard $707.04
MSW & Mixed Recyclable Materials $707.04
Clean Wood & Yard Trimmings $403.05
Clean Wood & Dry Wall $298.54
Clean Wood & Metal $149.28
Clean Wood & Cardboard $149.28
Clean Wood & Mixed Recyclable Materials $149.28
Yard Trimmings & Dry Wall $403.05
Yard Trimmings & Metal $253.77
Yard Trimmings & Cardboard $253.77
Yard Trimmings and Mixed Recyclable Materials $253.77
Dry Wall & Metal $149.28
Dry Wall & Cardboard $149.28
Dry Wall & Mixed Recyclable Materials $149.28
Metal & Cardboard No Charge
Metal & Mixed Recyclable Materials No Charge
Cardboard & Mixed Recyclable Materials No Charge

ATTACHMENT 1

Collection Rates Effective January 1, 2029

11 Table 20

RATES FOR MISCELLANEOUS SERVICES

RESIDENTIAL
Additional Carts (Cost/Cart/Month)
RATE
Solid Waste Provided at monthly rate in Table 1 multiplied by number of carts
RECYCLING (AFTER 4-35 GAL OR 2-95 GAL CARTS INCLUDED IN BASE RESIDENTIAL RATE) RATE 20 gallon $7.88
35 gallon $7.88
65 gallon $7.88
95 gallon $7.88
YARDWASTE/FOOD (AFTER 4-35 GAL OR 2-95 GAL CARTS IN BASE RESIDENTIAL RATE) RATE 20 gallon $7.88
35 gallon $7.88
65 gallon $7.88
95 gallon $7.88

SPECIAL SERVICES (COST PER SERVICE) RATE
Bulky Items: large non-metal furniture that cannot fit in standard carts/bins & are not accepted in City’s Recycle More Program e.g., sofas, wood furniture, etc. ($/service up to 4 bulky items/service) $86.58
Each bulky item over 4 bulky items
($/Item - excluding e-waste & cardboard) $34.93
Cardboard and single stream recyclables No Charge
E-Waste (CRTs/LCDs), Metal Items and Cooking Oil No Charge EXTRA SERVICE ($/BIN/SERVICE) RATE
On day of service (Monday-Friday) up to 9 30-gal. bags or up to 9 30-gal. cans $14.64 /each barrel or bag
On day of service (Monday-Friday) 10 or more 30-gal. bags or cans $70.72/yard Not on day of service (Monday-Friday) up to 9 30-gal. bags or cans $14.64/barrel or bag + $116.88 trip charge Not on day of service (Monday-Friday)
10 or more 30-gal. bags or cans $70.72/yard + $116.88 trip charge Not on day of service (Saturday, Sunday)
up to 9 30-gal. bags or cans $14.64/barrel + $337.78 trip charge Not on day of service (Saturday, Sunday)
10 or more 30-gal. bags or cans $70.72/yard + $337.78 trip charge

BACKYARD SERVICE
(INCLUDES SOLID WASTE, RECYCLING, YARDWASTE/FOODSCRAPS - COST/MONTH) RATE
5-600 feet from curb to backyard cart location $52.79
601 feet or more from curb to backyard cart location $65.29 With letter from physician indicating resident is physically unable and/or advised not to wheel cart(s) to the curb
No Charge

COMMERCIAL & MULTI-FAMILY RATE
Bulky Items: large non-metal furniture that cannot fit in standard carts/bins & are not accepted in City’s Recycle More Program e.g., sofas, wood furniture, etc. ($/service up to 4 bulky items/service) $173.13
Each bulky item over 4 bulky items
($/Item – excluding e-waste) $34.93
Cardboard and single stream recyclables No Charge
Electronic Waste (CRTs/LCDs), Metal Items and Cooking Oil No Charge Pallets (Up to 10 pallets) $173.13

ATTACHMENT 1

Collection Rates Effective January 1, 2029

12 Table 20, continued

RATES FOR MISCELLANEOUS SERVICES

EXTRA SERVICE (COST/CART/SERVICE AND COST/BIN/SERVICE) RATE 35 gallon $34.93
65 gallon $52.39
95 gallon $69.80

1.5 cubic yards $377.39
2 cubic yards $428.13
3 cubic yards $529.61
4 cubic yards $631.07
6 cubic yards $837.25

MISCELLANEOUS RATE
Bin Cleaning/Bin Exchange ($/Bin/Service) $472.47
Heavy Waste (Rocks, dirt or other materials in bins or carts that exceed manufacturer’s maximum weight for container)
Cost / collection
$209.53
Hourly labor charge (for 2 persons) for on-site transfer of solid waste/materials from smaller exterior collection containers to larger exterior collection container(s)
$248.03
Locking Bin or Key Fee (if bin must be unlocked prior to service or if key must be used to access container(s)) ($/month) $17.48

RECYCLING ($/Service) RATE
Single Stream Recyclables (less than 10 cubic yard) No Charge Source Separated Recyclables (less than 10 cubic yard) No Charge Yard Trimmings (less than 10 cubic yard) No Charge

SATURDAY, SUNDAY SERVICE
(Cost/month for 1x/week solid waste service)
RATE
35 gallon $262.36
65 gallon $262.36
95 gallon $262.36

TRIP CHARGES for return to collect containers not available/ accessible for pickup or for a one-time collection on a special (non-regular route) day (Cost/Trip)

up to 35 gallon $116.91
35 gallon – 6 cubic yards $225.19

ATTACHMENT 1

Collection Rates Effective January 1, 2029

13 Table 20, continued

RATES FOR MISCELLANEOUS SERVICES

ROLL OFF/COMPACTOR/TEMPORARY BINS RATE
Overweight Surcharge (10 cubic yards and more) if roll off box or compactor weight causes collection truck to exceed legal highway weight limit established by State of California. Cost of labor and equipment to empty the excess into another container.

Trip charge ($375.24) plus cost to bring in
equipment capable of removing such
materials plus $151.35 per ton
Sealed watertight roll off boxes (for wet materials such as pomace) Additional cost/ service for special sealed box and added labor $78.91 Demurrage for non-removal after 3 days (Cost/Bin/Day)
$46.62
Trip Charge - Move/Relocate Box
(Cost/Box/ Service) $375.24
Rental Fee (Cost/day) $46.62
Temporary Bins (Cost/5 days)
2 cubic yards $366.47
3 cubic yards $437.20
4 cubic yards $507.87

OTHER FEES RATE
City Directed Spill Clean Up
(waste around overflowing bins/carts after 2 warnings
and direction from City)
$626.92
Contaminated Recycling Charges (materials containing 5% or more contamination that must be disposed as solid waste)

Contaminated residential recyclable materials, yard trimmings, and co-collected food scraps/yard trimmings

35 gallon $34.93
65 gallon $52.39
95 gallon $69.80
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in carts
Rates in Table 4 apply
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in bins

1.5 cubic yards $377.39
2 cubic yards $428.13
3 cubic yards $529.61
4 cubic yards $631.07
6 cubic yards $837.25
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in roll off boxes Rates in Table 6 apply
Contaminated commercial, multifamily & special event recyclable materials, yard trimmings, food scraps in compactors
Rates in Tables 5 and 7 apply

ATTACHMENT 1
Collection Rates Effective July 1, 2025

Table 20, continued

RATES FOR MISCELLANEOUS SERVICES

COMPLIANCE FINES
Fines are charged for violations occurring within a 12 month period

RATE
First violation within a 12 month period
Second violation within a 12 month period
Third violation or more within a 12 month period
$100
$200
$500

DEPOSITS
Residential Service and Commercial Cart Service: One-time deposit to initiate service, refundable after 12 months with 1% interest for customer in good standing

RATE
Deposit for Commercial Cart Service $80.00
Deposit for Residential Service $40.00
Residential Cart Redelivery Charge $25.00
Deposit for Commercial Bins Cost of 1 month’s service refundable after 12 months with 1% interest for customer in good
standing
Deposit for Roll Off/Compactor Service
(Applies to new customers – deposit applied to
cost of first service)
RATE
Solid Waste 50% of service
Recyclable Materials 50% of service

ATTACHMENT 1