Napa City Council
April 15, 2025

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27 The main revenue streams for SWR 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 6 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 City Fiscal Year (“FY”) 2025/26, FY2026/27, 2027/28, FY 2028/29, FY 2029/30.

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28 Figure 2: Collection Service Rate Revenues from City FY2019/20 through FY2024/25 $7,599,917.0 $7,641,475.5 $7,401,979.4 $7,548,781.5 $8,328,841.7 $8,380,411.0 $4,590,735.85 $4,857,382.20 $5,626,867.61 $5,573,897.18 $5,584,109.17 $5,803,390.96
$2,806,996.4 $3,590,872.6 $3,375,794.2 $3,374,803.9
$3,300,272.1 $3,467,525.9 $1,422,089.3
$1,512,351.4 $1,489,172.4 $1,687,421.1
$1,694,061.7 $1,624,561.1
$280,661.6
$264,959.5 $296,282.5 $301,114.1
$312,154.0 $322,767.8
$16,700,400.0
$17,867,041.2 $18,190,096.1 $18,486,017.7 $19,219,438.7 $19,598,656.8 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

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29 Cumulative collection service revenue (with and without collection service rate adjustments) is shown in row 6 of Appendix D. The components of this revenue are as follows:

a. Residential Revenue

Residential revenue consisted of $12,380,077 or approximately 39.9% of the total collection service revenue for City FY 2023/24 (total collection revenue was $31,050,440 for FY 2023/24). Residential revenue accounts for the largest percentage of collection revenue to the SWR Fund. Residential revenue grew an average of 3.8% per year for the period 2019 through 2024. The average number of residential accounts has increased from 22,344 in 2019 to 22,768 in 2024.

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 for 11,177 of the total 22,768 residential service customers as of December 2024). Please see Figure 4 below for changes in residential solid waste service sizes from CY2019 through CY2024.

Figure 3: Residential Solid Waste Service Cart Sizes from CY2019 to CY2024

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30 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 $ 3,551,714 or approximately 11.4% 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 2.3% per year for the period FY2019/20 through FY2023/24.

c. Commercial Revenue

Commercial revenue consisted of $9,499,374 or approximately 30.6% of the total collection revenue for City FY 2023/24. Commercial revenue is the second largest rate revenue stream to the SWR Fund and grew by an average of 6.1% per year for the period FY2019/20 through FY2023/24.

d. Roll Off/Compactor Revenue

Roll-Off Box/Compactor service revenue consisted of $5,232,366 or approximately 16.9% of the total collection revenue for City FY 2023/24. Roll-Off Box/Compactor revenue is the third largest rate revenue stream to the SWR Fund and grew by an average of 3.4% per year for the period of FY2019/20 through FY2023/24. The number of “permanent” (vs. one -time or “temporary”) Roll-Off Box/Compactor MSW accounts has increased CY2019 to CY2024.72 in December of 2014 to 342 in December of 2018.

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31 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 rates 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 N RWS’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 Understa nding 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 $386,909 or approximately 1.2% of the total collection service revenue for City FY 2023/24. Follwing the 2022 N RWS Contract amendment, t he cost for collection services in the City -NVUSD contract is now adjusted by the fixed NRWS labor cost of 3.5% per year. NVUSD revenue is projected to escalate by 3.5% per year for FY 2025/26 through FY 2029/30.

4.1.2 Revenues from MDF Gate Fees and Sales of Compost, Topsoil and Gravel (Row 7 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 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

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32 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.

In Janauary of 2020, the City negotiating a long-term extension of the agreement with Napa County to match the Countcent contract extension with its hauler (Napa County Recycling & Waste Services, LLC or “NCRWS”) through CY2030 (with five one-year extension options through end of CY2035 1 if desired by Napa County). Under the terms of the amended and extended City-County MOU for use of the City’s MDF, the County is paying an increased rate for processing compostable organic materials at the MDF commensurate with the capital investments and higher processing costs incurred by the City (and paid to NRWS). The arrang ements for processing recyclable materials (glass, plastics, cardboard, pa per, etc.) MOU pricing given the volatility 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 $ 14 per ton in the recent past. As noted above, pursuant to the City’s contract with NRWS for operation of the 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 reven ue figures included in Row 73 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 67 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.

4.1.3 Sale of Secondary Materials (Row 1 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 4.2.5 below for details about the City’s processing

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33 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 FY2025/26 prior to applying any collection service rate adjustment is $47,376,900. The total projected base revenue for City FY2025/26 with proposed rate adjustments is $52,833,100 as shown in row 11 and row 90 of Appendix D.

Section 4.2 PROJECTED EXPENDITURES

The projected expenses for Solid Waste and Materials Diversion Fund for FY2025/26, FY2026/27, FY2027/28, FY2028/29, and FY2029/30 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 44 of Appendix D)

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

The cost for FY 2024/25 is $926,440 based on updated Cost Allocation Study. The budgeted cost within the two-year rate cycle FY2025/26 is $1,376,765 and the projected cost for FY2026/27 is $1,432,000.

4.2.2 Street Mitigation/Repair Costs (Row 45 of Appendix D) Since 2009, the Solid Waste Fund has contributed to repair and maintenance of streets due to impacts caused by the weight of the MSW, recycling and yard waste collection vehicles and the roll-off vehicles.

During the 2018 rate-setting process, a 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. In summary, the updated 2019 analysis found that the heavy refuse and recycling collection fleet account for 11.6% of the impacts to City streets .

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.

Based on the 2019 analysis and applying the Bay Area ENR construction cost index at 5.3%, the annual contribution for refuse and recycling c ollection vehicles is $1,317,000 in 2025/26 and $1,387,000 in 2026/27 (row 45 of Appendix D).

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34 4.2.3 Transfer Station Tipping Fees (Row 55 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. Under the current adopted NVWMA rate plan, this rate will increase by $7/ton on October 1, 2025 and $3/ton on each October 1, from 2026 through 2030. The budgeted cost for FY2025/26 is $4,165,000 with FY2026/27 at $4,300,000 and the projected cost for FY2029/30 is $ 4,705,000. Transfer Station disposal costs curren tly represent approximately 8.8% of the SWR Fund’s collection (rate-based) revenue.

4.2.4 Contractual Payments to NRWS (Rows 56-69 and Row 72 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 2022 and SB 1383 Contract Amendments), costs a re adjusted annually on January 1. Per the 2022 and SB 1383 Contract Amendments with NRWS, labor related costs escalate at a fixed 3.5% with non-labor costs increased at 2.5%. Pursuant to the City’s contract with NRWS, the company is compensated in the several ways:

a. Operating and Capital Cost Payment (Row 61 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 FY2025/26 is $18,400,000 with FY2026/27 at $19,215,0003,624,500 and the projected cost for FY2027/28 is $20,115,171. The Capital and Operating Payments to NRWS currently represents approximately 59% of the SWR Fund’s collection (rate-based) revenue.

b. 3% Base Profit Margin (Row 57 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 FY2025/26 is $600,000 with FY2026/27 at $625,000 and the projected cost for FY2027/282 is $650,600. 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 67 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 FY202519/26 is $3,700,000 with FY2026/27 at $3,700,000 and the projected cost for FY2027/28 is $3,700,000.

d. NVUSD (Row 60 of Appendix D):

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35 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 2022 Contract Amendment with NRWS, these costs escalate by 3.5% each year. The budgeted cost to NRWS for NVUSD service in FY2025/26 is $189,500 with FY2026/27 at $197,000 and $205.100 in FY2027/28.

e. Allowance Based Program s and Unit Costs (Rows 56 and 68 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 FY2025/260 is $104,000 with FY2026/27 at $108,200 and $117,254 in FY2027/28.

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 FY2025/26 is $409,000 with FY2026/27 at $426,000 and $443,500 in FY2027/28.

f. Payment for Processing Cost Over Baseline (Row 65 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 construction 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 CY2024 was $4,944,000. 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 FY2025/26 is $5,300,000 with FY2026/27 projected at $5,510,000 and $5,730,000 in FY2027/282.

g. Diversion Incentive Payments (Row 59 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

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36 payment budgeted for FY2025/26 is $121,000 with FY2026/27 projected at $126,000 and $131,200 in FY2027/28.

h. Partnership Programs (Row 62 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 FY2025/26 is $189,500 with FY2026/27 at $197,000 and $205,100165,000 in FY2027/282.

i. Recycle More Program (Row 66 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 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 FY2025/26 is $19,000 with FY2026/27 at $20,000 and $20,800 in FY2027/28.

j. Commercial Food Scrap Diversion Program (Row 58 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 $327,000 for FY 2025/26 with FY2026/27 at $340,000222,500 and $353,900 in FY2027/28

4.2.5 Payments for Recycled Material to Northern Recycling and Other Companies (Row 76 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 67. 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 and was amended in 2016 and 2020. 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,

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37 glass and aluminum containers. For FY2025/26 staff estimates that the materials delivered by Northern 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 76 of the Master Spreadsheet in Attachment 3. When markets allow for it, the additional payments in Row 76 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 FY2024/25 are $ 46,704,900 as shown in Rows 89 and 91 of Appendix D . The to tal projected expenditur es for FY2025/26 are $ 52,605,900 and $ 55,177,400 for FY2026/27.

Section 4.3 STATUS OF RESERVES FOR SOLID WASTE AND RECYCLING ENTERPRISE FUND (Rows 98 to 102 of Appendix D)

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 Op erating 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 balance of the Rate Stab ilization Reserve (approximately $1.9 million at the time) was used in FY2018/19 as the 2018 NRWS contract amendment was finalization and before previous rate adjustments began in August of 2019.

The proposed rated would restore and replenish reserves to allow for a rate stabilization reserrve fund balance (exceeding the required 20% operating reserve) starting with FY2026/27 as an estimated

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38 $393,000, building to $1,5 47,000 at the end of FY2027/28, $ 3,759,000 at the end of FY2028/29 and $6,821,000 by the end of FY2029/30. These projections for the rate stabilization reserves are show in row 101 of Appendix D.

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.

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.”

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39 A. Liability Reserve: Minimum: $200,000
Projected Balance at 6/30/25: $350,000
Row 98 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 and remains valid.

B. Capital Improvements Reserve: Projected Balance at 6/30/25: $537,952 Row 99 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, modernization and/or rebuilding of the MDF at the e nd 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 California 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 for coming City FYs, the proposed rate budget projec ts an average annual contribution of $4,000,00 to this reserve over the next five years. See below for proposed MDF CIP funding schedule:

FY2025/26 = $3M
FY2026/27 = $4M
FY2027/28 = $5M
FY2028/29 = $5M
FY2029/30 = $3M

The Fund’s capital improvement reserve is currently at $ 572,952 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 3.2.1 of this rate study.

C. Operating Reserve: Projected Balance at 6/30/25: $9,526,938 Row 100 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 SWR Fund operating budget. The Fund does not have an “emergency reserve” per se and part of the purpose of the Operating Reserve

ATTACHMENT 1

40 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 tha t 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. The projected balance at the end of FY2024/25 is approximately $9,526,900 which as calculated as described above amounts to 20%.

D. Rate Stabilization Reserve: Projected Balance at 6/30/25: $0 Row 101 of Appendix D

This reserve provides the City with funds to 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 increases. 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 fr om the 2018 Contract Amendment. Recognition of market volatility of material sales drives the need to maintain a rate sta bilization reserve balance for the Fund. The proposed rates project funding the rate stabilization fund to withstand volatility in ma terial sales in an amount near 15% by FY2027/28 and ne ar 60 % by FY20 29/30 assuming material sales re main at $10.6M per year. Th is amount is a step in the right direction when taking into account the market has shown 121% volatility within the last 5-year rate study period when material sales price per ton changed from a low of $121/ton in 2019, a high of $268/ton in 2022, and dropped back down to $190/ton in 2024.

The proposed rated would restore and replenish reserves to allow for a rate stabilization reserrve fund balance (exceeding the required 20% operating reserve) starting with FY2026/27 as an estimated $393,000, building to $1,547,000 at the end of FY2027/28, $3,759,000 at the end of FY2028/29 and $6,821,000 by the end of FY2029/30. These projections for the rate stabilization reserves are show in row 101 of Appendix D.

ATTACHMENT 1

41 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 of $968,163 from City FY2023/24 through use of existing reserves (operating reserves), this is not a sustainable approach for future years. Based on the projections identified in Chapter 4, please see Table 2 below which indicates the net results of total rev enues minus total expenditures and reserve balances without a rate adjustment.

Table 2: Projected SWR Fund Position without Rate Adjustment FY2024/25 FY2025/26 FY2026/27 FY2027/28
Total Revenues $48,444,820 $47,376,900 $47,578,400 $48,279,900 Total Expenditures ($46,704,861) ($52,605,885) ($55,177,391) ($58,023,261) Net Results $1,739,959 ($5,228,985) ($7,598,991) ($9,743,361)

Reserves
Projected
FY2024/25
Projected
FY2025/26
Projected
FY2026/27

Projected
FY2027/28
Projected
FY2028/29
Rate
Stabilization $0 $0 $0 $0 $0
Operating $9,526,952 $4,092,751 ($3,856,240) ($3,919,501) ($13,662,601) CIP $537,952 $537,952 $3,337,952 $7,637,952 $3,637,952
Liability $350,000 $350,000 $350,000 $0 $0

ATTACHMENT 1

42 Total $7,215,579 $4,092,750 ($168,288) ($9,911,649) ($19,936,298)

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 2.9% of existing rate revenue (see rows 48-50 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 solid waste capital improvements, contribution to street resurfacing fund, contributions to reserves an d the debt service payment itself). With existing solid waste rates and projected revenues and expenses, the debt service ratio for FY2025/26 would be negative 0.86, which is non -compliant with the minimum debt service coverage ratio required by the 2016 SWRB obligations (please see Figure 5 below).

ATTACHMENT 1

43 Figure 4: Debt Service Coverage Ratios without Proposed Rate Adjustments (FY2025/26 to FY2027/28)

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 $5,228,985 for FY2025/26 The cumulative SWR Fund position by the end of FY2029/30 would be negative $9,743,361 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 July 1, 2025 (RY2025)
• 10% rate increase effective January 1, 2026 (RY2026)
• 8% rate increase effective January 1, 2027 (RY2027)
• 8% rate increase effective January 1, 2028 (RY2028)
• 6% rate increase effective January 1, 2029 (RY2029)

Please see Appendix K for full rate schedule with proposed rate adjustments (inclusive of the net impact of 5-year phase plan for SB1383 commercial organics 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 FY2025/26 FY2026/27 FY2027/28 FY2028/29
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

0.86 -1.41 -2.89

1.25 1.25 1.25
-4
-3
-2
-1
0 1
2 Debt Service Ratios without Rate Adjustments
Debt Service Coverage Ratio without Proposed Rate Adjustment Minimum Debt Service Coverage Ratio

ATTACHMENT 1

44 Reserves
Projected
FY2025/26
End of
FY2026/27
End of
FY2027/28
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 near total reserve levels available at end of FY2017/18 before the drop in material sales in 2019 required drawdown of reserves.

Figure 5: Debt Service Coverage Ratios with Proposed Rate Adjustments (FY2025/26 to FY2027/28)

9.81 12.65

15.76 1.25 1.25 1.25
0 1
2 3
4 5
6 Debt Service Ratios with Rate Adjustment
Debt Service Coverage Ratio with Proposed Rate Adjustment Minimum Debt Service Coverage Ratio

ATTACHMENT 1

45 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 FY2025/26 and the debt coverage of 0.86 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 s. If the proposed rates are adopted, the projected debt service coverage ratio are projected to safely meet or exceed the minimum SWRB required 1 .25 debt service coverage ratio in each of the five years covered by the study (see Figure 6 above). This data is also shown in row 103 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 monthly rate on residential service customers is shown in the chart below:

ATTACHMENT 1

46 Cart Size
Existing
Monthly
Rate
Proposed
Monthly
Rate
Effective
July 1,
2025
Proposed
Monthly Rate
Effective
January 1,
2026
Proposed
Monthly
Rate
Effective
January 1,
2027
Proposed
Monthly
Rate
Effective
January 1,
2028
Proposed
Monthly
Rate
Effective
January 1,
2029
20 gallons $30.54 $34.20 $37.62 $40.63 $43.88 $46.51
35 gallons $38.29 $42.88 $47.17 $50.94 $55.02 $58.32
65 gallons $58.71 $65.76 $72.34 $78.13 $84.38 $89.44
95 gallons $90.30 $101.14 $111.25 $120.15 $129.76 $137.55

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: $597.10 per month for company-provided 2 cubic yard (cy) MSW bin, serviced once per week
Rate as of July 1, 2025 $668.75 per month
Rate as of January 1, 2026 $735.63 per month
Rate as of January 1, 2027 $794.48 per month
Rate as of January 1, 2028 $858.04 per month

ATTACHMENT 1

47 Rate as of January 1, 2029 $909.52 per month

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, rate study concluded that MSW rate should remain unchanged:

Existing Rate: $464.20 per service of uncompacted 10 cy MSW roll-off debris box
Rate as of July 1, 2025 $464.20 per service
Rate as of January 1, 2026 $464.20 per service
Rate as of January 1, 2027 $464.20 per service
Rate as of January 1, 2028 $464.20 per service
Rate as of January 1, 2029 $464.20 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: $244.98 per service of 10 cy concrete recycling roll-off box
Rate as of July 1, 2025 $274.38 per service
Rate as of January 1, 2026 $301.82 per service
Rate as of January 1, 2027 $332.00 per service
Rate as of January 1, 2028 $358.56 per service
Rate as of January 1, 2029 $387.24 per service

Section 5.5 SB 1383 MANDATORY ORGANICS SERVICE 5-YEAR RATE STUDY

In the course of developing commercial food scrap collection rates in 2014/2015, the City commissioned an independent study to establish those rates when the full program became available to all City (NRWS) commercial customers in April of 2015. That stud y recommended that the commercial food scrap collection rates be 75% of the Municipal Solid Waste (MSW) landfill service collection rates based on service cost at the time and the desire for there to be sufficient savings to encourage voluntary participation in the program. With the passage of SB 1383, all commercial generators of compostable organic materials (i.e., yard trimmings, food scraps and soiled paper) are now required to subscribe and participate in the City’s organics collection program(s). As with commercial recycling, commercial customers have historically been offered service of yard trimmings at no additional charge (much like residential customers have a “bundled” rate that includes recycling and compost collection services).

However, sin ce SB 1383 made the collection of the full spectrum of compostable organic waste mandatory, it was recognized that the “no charge” commercial yard trimmings service needs to be consolidated and merged with the current commercial food scraps collection serv ice rates (currently 75% of commercial MSW collection rates). This also applies to multi-family (apartment) complexes that are serviced like commercial properties. The results of the updated independent study are detailed in Appendix P to this rate study.

ATTACHMENT 1

48 After extensive independent analysis, the recommended 5 -year rates for commercial organics is anticipated to achieve the optimal cost -recovery rates for SB 1383’s new mandatory collection requirements for commercial and multifamily customers. The recommended rates are anticipated to sufficiently cover the collection and processing costs of the commercial and multifamily food scraps and yard trimming services, while also incentivizing compliance with SB 1383’s mandatory requirements.

The rates also incorporate increased costs to NRWS for operation impacts and equipment capitalization necessary to expand its food scraps and yard trimmings collection routes and processing at the MRF. It is anticipated that by the fifth year, commercial and multifamily customers will be able to co-collect their food scraps and yard trimmings into the same container, thereby reducing route collection costs at that time. Accordingly, staff recommends the new food scraps collection rates be reduced over time to 45% (or less) of MSW collection rate structure.

The overall revenue impacts of this study are shown below as well as row 92 of Appendix D:

Description of Revenue Impact
Year 1
Revenue
Impact
Year 2
Revenue
Impact
Year 3
Revenue
Impact
Year 4
Revenue
Impact
Year 5
Revenue
Impact
Report Section
Describing
Detailed
Analysis
Revenue Impact 1: Increase in
Rate Revenue from Current
Commercial and Multi-family Yard
Trimmings Customers Who
Currently do not Pay for this
Service
$38,248 $153,172 $211,625 $307,365 $371,321 2.5.1, 3.1.1 Revenue Impact 2: Decrease in
Rate Revenue from Current
Commercial Food Scrap Recycling
Customers Who Currently Pay 75%
of the Equivalent MSW Rate for
this Service
-$154,883 -$466,224 -$607,988 -$761,623 -$947,647 2.5.2, 3.1.2 Revenue Impact 3: Increase in
Rate Revenue from Currently Non-
compliant Commercial Generators
that Implement Food Scrap
Recycling Programs between 2025
and 2029
$86,818 $141,769 $111,810 $81,899 $51,232 2.5.3, 3.1.3
Revenue Impact 4: Decrease in
MSW rate revenue from
commercial and multi-family
generators who ‘right size’ their
MSW service levels as a result of
incorporating commercial
compostable service
-$51,198 -$112,636 -$121,647 -$128,946 -$134,103 2.5.4, 3.1.4 Net Revenue Impact by Rate
Year -$81,014 -$283,918 -$406,200 -$501,305 -$659,198 3.1.5

ATTACHMENT 1

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

SCRAP DIVERSION PROGRAM

In 2011, a 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 rel ied heavily on diverting food scraps fro m 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 applied (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 ra te initiated in April of 2015. The Economic review concluded that it is appropriate 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.

ATTACHMENT 1

50 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.

ATTACHMENT 1

51 • 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 medications 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 shoe s. 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

ATTACHMENT 1

52 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.

ATTACHMENT 1

53 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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54 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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55 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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56 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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57 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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58 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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59 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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60 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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61 “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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69 APPENDIX C : Napa Recycling and Waste Services Cost -of-Service Study (for 2018 Contract Amendment to City-NRWS Agreement)

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70 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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76 APPENDIX E : MAY 8, 2018 CALRECYCLE LETTER TO CALIFORNIA JURISDICTIONS REGARDING CHINA’S “NATIONAL SWORD” POLICY

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

NATIONAL WASTE & RECYCLING ASSOCIATION (REPRINTED WITH PERMISSION)

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

BONDS (GREEN BONDS)

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94 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

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95 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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96 APPENDIX I: UPDATED 2019 STUDY OF NAPA RECYCLING AND REFUSE COLLECTION WEIGHT

IMPACT ON CITY STREETS

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97 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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98 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

99 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

ATTACHMENT 1

100

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

ATTACHMENT 1

101

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

102
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

103

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

104

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

105

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

106

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

107
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

108
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

109

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

110
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

111

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

112

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

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APPENDIX L: STAFF REPORT FOR SB 1383 ORDINANCE ADOPTION (O2022-001)

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APPENDIX M: STAFF REPORT FOR SB 619 NOTIFICATION OF INTENT TO COMPLY WITH SB 1383 SHORT -LIVED C LIMATE POLLUTANTS & ORGANIC WASTE REDUCTION REQUIREMENTS (O2022-008)

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APPENDIX N: STAFF REPORT FOR 2022 NRWS Contract Amendment

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APPENDIX O: STAFF REPORT FOR SB 1383 NRWS Contract Amendment

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APPENDIX P: SB 1383 MANDATORY COMMERCIAL ORGANICS
5-YEAR COLLECTION RATE AND MIGRATION STUDY

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Development of a Phased 5-Year
Organics Rate Structure, Service
Migration Predictions, and Revenue
Impacts of a Fully Implemented SB
1383 Organics Program

Submitted on April 4, 2025, by EcoNomics, Inc.

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ATTACHMENT 1

Table of Contents
1 Project Background and Objectives ................................ ................................ ....... 67

1.1 General Overview of Senate Bill 1383 ................................ ............................. 67

1.2 City’s SB 1383 Implementation Progress ................................ ........................ 67

1.3 SB 619 Notice of Intent to Comply ................................ ................................ .. 68

1.4 2023-2024 Commercial Co-collected Compostable Rate Study ....................... 68

1.5 2025 Rate Study Objectives ................................ ................................ ........... 69 2 Findings ................................ ................................ ................................ .............. 71

2.1 Summary of Key Findings ................................ ................................ ............... 71

2.2 5-year Phased-in Rate for Commercial and Multifamily Yard Trimmings Service 72

2.2.1 5-year Phased-in Rate for Commercial Yard Trimmings Service ................. 72

2.2.2 5-year Phased-in Rate for Multifamily Yard Trimmings Service ................... 73

2.3 5-year Phased-in Rate for Commercial Food Scrap Service .............................. 74

2.4 5-year Phased-in Rate for Multifamily Food Scrap Service ................................ 74

2.4.1 5-year Phased-in Rate for Packaged Organics Collection Service............... 75

2.5 Revenue Impacts of Proposed Rates ................................ .............................. 76

2.5.1 Overview of Revenue Impact 1: Increase in Rate Revenue from Current Yard Trimmings Customers Who Currently do not Pay for this Service ............................. 78

2.5.2 Overview of Revenue Impact 2: Decrease in Rate Revenue from Current Commercial Food Scrap Recycling Customers Who Currently Pay 75% of the Equivalent MSW Rate for this Service ................................ ................................ ..... 78

2.5.3 Overview of Revenue Impact 3: Increase in Rate Revenue from Currently Non-compliant Commercial Generators that Implement Food Scrap Recycling Programs in 2025 ................................ ................................ ................................ . 78

2.5.4 Overview of Revenue Impact 4: Decrease in MSW rate revenue from commercial customers who ‘right size’ their MSW service levels as a result of incorporating commercial compostable service ................................ ..................... 79

2.6 Cost Impacts of Proposed Rates ................................ ................................ .... 79

2.6.1 Overview of Cost Impact 1: Increase in Costs due to Need for Additional Staff For Multi-family Properties ................................ ................................ .................... 80

2.6.2 Overview of Cost Impact 2: Increase in Cost due to Capital Expenses Associated with Bins and Liners ................................ ................................ ............ 81

2.6.3 Overview of Cost Impact 3: Change in Collection Cost Payments to NRWS due to Reduction in Lift Costs ................................ ................................ ............... 81

2.6.4 Overview of Cost Impact 4: Increase in Cost due to Capital Expenses Associated with New Collection Vehicle ................................ ................................ 81

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2.6.5 Overview of Cost Impact 5. Increase in Cost due to Increased Frequency of Cart Washing ................................ ................................ ................................ ....... 82

2.6.6 Overview of Cost Impact 6: Decrease in Cost from Avoided Disposal ......... 82

2.6.7 Overview of Cost Impact 7: Increase in Costs due to Need for Additional Staff to Drive Vehicle ................................ ................................ ................................ .... 82

2.6.8 Overview of Cost Impact 8: Increase in Costs for Operating Additional Vehicle 82

2.7 Combined cost and revenue impacts of recommended rates ........................... 83

2.7.1 Analysis of Recommended Program Rates and Net Impact on the City’s Solid Waste Enterprise Fund ................................ ................................ ......................... 85

2.8 Rate Impacts on Individual Customers ................................ ........................... 85

2.8.1 Rate impact on current customers: Commercial and Multi-family Yard Trimmings Recycling Customers ................................ ................................ ........... 86

2.8.2 Rate impact on current customers: Commercial and Multi-family Food Scrap Recycling Customers ................................ ................................ ........................... 86

2.8.3 Rate impact on future customers: Non-compliant commercial and multi- family generators that will need to implement food scrap recycling service, yard trimmings service, or both ................................ ................................ .................... 87

2.8.4 Rate impact on migrating customers for both Food Scraps and Yard Trimmings ................................ ................................ ................................ ........... 87

2.8.5 Rate impacts on individual customers as a result of the costs outlined in Table 7 88

2.8.6 Cost Impact 1: Labor Costs ................................ ................................ .......... 92

2.8.7 Cost Impact 2: Bins and Liners ................................ ................................ ...... 92

2.8.8 Cost Impact 3: Collection Cost ................................ ................................ ..... 92

2.8.9 Cost Impact 4: Purchase of a New Vehicle ................................ ..................... 92

2.8.10 Cost Impact 5: Increased Washing of Food Scraps Carts .............................. 92

2.8.11 Cost Impact 7: Cost of Vehicle Driver ................................ .......................... 93

2.8.12 Cost Impact 8: Vehicle Operating Expenses ................................ ................. 93

2.9 Recommendation to Closely Track Migration and MSW Right-sizing to Ensure Fund Stability ................................ ................................ ................................ .......... 93

2.9.1 Migration. ................................ ................................ .............................. 93

2.9.2 MSW Right Sizing. ................................ ................................ ................... 93

2.9.3 Recommended Methodology to True Up Actual Migration Each Rate Year .. 94 3 Methodology ................................ ................................ ................................ ........ 95

3.1 Methodology to Identify Revenue Impacts ................................ ....................... 95

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3.1.1 Revenue Impact 1: Increase in Rate Revenue from Current Commercial and Multi-family Yard Trimmings Customers Who do not Pay for this Service .................. 95

3.1.2 Revenue Impact 2: Decrease in Rate Revenue from Current Commercial Food Scrap Recycling Customers Who Currently Pay 75% of the Equivalent MSW Rate for this Service ................................ ................................ ................................ ..... 96

3.1.3 Revenue Impact 3: Increase in Rate Revenue from Currently Non-compliant Commercial Generators that Implement Food Scrap Recycling Programs in 2025. ... 97

3.1.4 Revenue Impact 4: Decrease in MSW rate revenue from commercial customers who ‘right size’ their MSW service levels as a result of incorporating commercial compostable service ................................ ................................ ......... 98

3.1.5 Overall Food Scraps and Yard Trimmings Revenue Impacts ...................... 98

3.2. Methodology to Identify Cost Impacts ................................ ................................ 99

3.2.1 Cost Impact 1: Increase in Costs due to Need for Additional Staff For Multifamily Properties ................................ ................................ .......................... 99

3.2.2 Cost Impact 2: Increase in Cost due to Capital Expenses Associated with Bins and Liners ................................ ................................ ................................ .. 100

3.2.3 Cost Impact 3: Decrease in Collection Cost Payments to NRWS due to Reduction in Lift Costs ................................ ................................ ....................... 101

3.2.4 Cost Impact 4: Increase in Cost due to Capital Expenses Associated with New Collection Vehicle ................................ ................................ ...................... 105

3.2.5 Cost Impact 5. Increase in Cost due to Increased Frequency of Cart Washing 105

3.2.6 Cost Impact 6: Decrease in Cost from Avoided Disposal ......................... 105

3.2.7 Cost Impact 7: Increase in Costs due to Need for Additional Staff to Drive Vehicle 108

3.2.8 Cost Impact 8: Increase in Costs for Operating Additional Vehicle ........... 108

3.3 Methodology to Model Downsizing for Yard Trimmings Customers ................. 108

3.4 Methodology to Model Customer Migration ................................ ................... 108

3.4.1 Most Likely Scenario ................................ ................................ ............. 110

3.4.2 Scenario 1: Customers with Greater than 1 Cubic Yard Food Scraps and Yard Trimmings Service ................................ ................................ .............................. 110

3.4.3 Scenario 2: Customers with Greater than 2 Cubic Yards Food Scraps and yard trimmings Service ................................ ................................ ....................... 112

3.5 Dynamic Migration Pacing ................................ ................................ ........... 113

3.5.1 Logistic Growth Model ................................ ................................ .......... 113

3.6 Exploring patterns for migrating customers ................................ ................... 119

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3.7 Methodology to Model Phased-in Rates ................................ ........................ 121

3.7.1 Structure of the 5-year phase-in period ................................ .................. 121

3.7.2 Final Rate Calculation ................................ ................................ .......... 121 4 Conclusion and Recommendations ................................ ................................ .... 124

4.1 Summary of Key Findings ................................ ................................ ............. 124

4.2 Implications for City Budgeting ................................ ................................ .... 124

5. Appendices ................................ ................................ ................................ ........... 126

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List of Tables
Table 1: Commercial Yard Trimmings Phased-In Rates and MSW Rate Comparison...................... 73 Table 2: Multifamily Yard Trimmings Phased-In Rates and MSW Rate Comparison ....................... 73 Table 3: Commercial Food Scraps Phased-In Rates and MSW Rate Comparison .......................... 74 Table 4: Multifamily Food Scraps Phased-In Rates and MSW Rate Comparison ............................ 75 Table 5: Commercial Packaged Organics Phased-In Rates and MSW Rate Comparison ................ 76 Table 6: Multifamily Packaged Organics Phased-In Rates and MSW Rate Comparison .................. 76 Table 7: Predicted Yearly Revenue Impact of Most Likely Migration Scenario ................................ 77 Table 8: Predicted Yearly Cost Impact of Most Likely Migration Scenario ...................................... 80 Table 9: Predicted Yearly Impact of Most Likely Migration Scenario .............................................. 84 Table 10: Expected Costs vs. Phased-in Revenue 2025-2028 ....................................................... 85 Table 11: Percentage Breakdown of Cost Components ............................................................... 89 Table 12: Phased-In Rates For Scenario 1 .................................................................................... 97 Table 13: Scenario 1: Total Monthly Revenue by Waste Type ........................................................ 98 Table 14: Migration Summary by Year Scenario 1 ....................................................................... 100 Table 15: Collection Cost Overview By Year .............................................................................. 101 Table 16: Lifts Summary by Type ............................................................................................... 102 Table 17: Predicted Lifts Summary by Type ............................................................................... 103 Table 18: Scenario 1 Lifts Summary by Type .............................................................................. 104 Table 19: Scenario 2 Lifts Summary by Type .............................................................................. 105 Table 20: Mean Weight per Cubic Yard by Cart Size ................................................................... 106 Table 21: Mean Weight per Cubic Yard by Waste Type ............................................................... 107

List of Figures
Figure 1. Cost in USD of each of the 7 components in Commercial Food Scraps Rates ................. 90 Figure 2. Cost in USD of each of the 7 components in Multifamily Food Scraps Rates ................... 90 Figure 3. Cost in USD of each of the 7 components in Commercial Yard Trimmings Rates ............. 91 Figure 4. Cost in USD of each of the 7 components in Multifamily Yard Trimmings Rates ............... 91 Figure 5. Expected Phased in Yearly Revenue by Waste Type ....................................................... 99 Figure 6. Distribution of cart weights standardized for fullness and volume. ............................... 107 Figure 7. Number of Containers by Service Type for All Accounts ............................................... 110 Figure 8. Number of Containers by Service Type for Scenario 1 Accounts ................................... 112 Figure 9. Number of Containers by Service Type for Scenario 2 Accounts ................................... 113 Figure 10. Scenario 1- Number of Migrating Accounts and Relevant Lifts for Those Accounts over Time ........................................................................................................................................ 115 Figure 11. Scenario 1- Number of Migrating Accounts and their Processing and Collection Costs 116 Figure 12. Scenario 2- Number of Migrating Accounts and Relevant Lifts for Those Accounts over Time ........................................................................................................................................ 117 Figure 13. Scenario 2- Number of Migrating Accounts and Processing and Collection Costs for Those Accounts over Time ........................................................................................................ 118 Figure 14. Difference in Non Migrated vs. Migrated Rate and Total Cubic Yards in Scenario 1 Accounts ................................................................................................................................. 119 Figure 15. Difference in Non Migrated vs. Migrated Rate and Total Cubic Yards in Scenario 2 Accounts ................................................................................................................................. 120

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List of Appendices
Appendix 1 - 2023/2024 report
Appendix 2 - Commercial Rate Tables – Yard Trimmings and Food Scraps Appendix 3 - MF Rate Tables – Yard Trimmings and Food Scraps Appendix 4 - Packaged Organics Rate Tables – Commercial and Multifamily Appendix 5 - Current and Predicted Services – Current Food Scraps and Onboarding Accounts Appendix 6 – Potential Migrators – Current and Migration Service Information Appendix 7 - Constants

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1 Project Background and Objectives

1.1 General Overview of Senate Bill 1383
In 2016, the California state legislature passed Senate Bill 1383 (SB 1383): California’s Short-Lived Climate Pollutants Reduction Law. This legislation is intended to reduce greenhouse gas emissions in California through diversion of organic waste materials from landfills. Definitions of organics were finalized by CalRecycl e in November 2020 and included: yard trimmings, food scraps, food -soiled paper and fibers. SB 1383 requires all commercial businesses, multi-family and single-family residences to separate their waste into 3 streams: municipal solid waste (MSW), organics, and recyclables on or before January 2022. Jurisdictions that do not comply with these organic waste diversion requirements may face fines of up to $10,000 per day. SB 1383 also requires all jurisdictions to adopt a local ordinance that mandates businesse s, multi-family properties, and residents to implement a 3 -container collection program or face administrative penalties. The City incorporated these mandatory recycling requirements into Section 5.61 of its municipal code in January 2022.

1.2 City’s SB 1383 Implementation Progress
The City recently amended its contract agreement with Napa Recycling and Waste Services (NRWS) to incorporate the programmatic and reporting requirements of SB 1383. Following a 5 -year pilot commercial collection program, in 2015 the City of Napa began off ering source-separated food scrap collection to businesses at a cost of 75% the cost of equivalent MSW service. This rate for food scraps, when compared to equivalent MSW service, offers businesses a rate incentive to comply with the organic -waste diversio n mandates. The food scrap rate incentivization level was the result of extensive analysis conducted by Economics, Inc. in 2014 and presented to the City Council in March 2015. The rate incentive was developed to ensure the program was financially sustainable and that the food scrap rate generated sufficient revenue to cover the collection and processing costs of the program. As of Jan 1, 2025, there are approximately 292 commercial accounts that subscribe to commercial food scrap collection service. The Ci ty’s contract hauler, NRWS has provided businesses and multi -family properties yard trimming recycling programs at no charge since the current collection contract has been effective. To become fully compliant with SB 1383, a total of 60 commercial and mult i-family accounts need to implement food scraps; an additional 88 multi -family accounts that currently have yard waste service will need to also implement a food scrap recycling program. Multi -family customers that subscribe to commercial collection servic e (i.e. have a centralized collection area for MSW, recycling, and/or organics as opposed to individual carts for each housing unit) must also have organics recycling service per SB 1383. Of the 123 multi-family properties in the City with commercial colle ction service, 109 have organics recycling service (88.6%), which includes food scraps and/or yard trimmings. SB 1383 requires all commercial and multi -family properties to have 3 -container collection service, therefore the City needs to implement additional organics recycling programs at both commercial and multi-family properties to attain full compliance with SB 1383.

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1.3 SB 619 Notice of Intent to Comply
In February of 2022 the City of Napa submitted a Notification of Intent to Comply (NOIC) to CalRecycle. The NOIC process, which was authorized by Senate Bill 619, allows jurisdictions to seek delays in enforcement of elements of SB 1383. Via the SB 619 NOI C process, the City requested, and was granted, conditional relief from CalRecycle enforcement surrounding the requirement that all multi -family properties have organics recycling collection service (including food scraps, fiber materials, and yard trimmin gs) by January 1, 2022. As part of the NOIC process, CalRecycle, in close coordination with the City, developed a Corrective Action Plan (CAP) that provided a pathway for the City to attain full multi -family organics recycling compliance by 2026. The CAP p rovided the City additional time for multi -family and commercial generators to successfully participate in the expanded and enhanced collection programs that comply with SB 1383. Implementing organics recycling at multi-family properties presents a unique set of challenges, including limitations on space in existing trash enclosures needed to house additional containers to collect food scraps and yard trimmings, high turnover among residents, multiple languages being spoken by residents, frequent trash over ages during move -in and move -out periods due to the disposal of unwanted bulky items by outgoing tenants, and property managers that are wary of adjusting service levels to incorporate organics recycling service. In recognition of these challenges, the exe cution of the CAP focused on providing extensive technical assistance to the waste generators to capture and recover the maximum amount of organic materials targeted by SB 1383 while also minimizing contamination.

1.4 2023-2024 Commercial Co-collected Compostable Rate
Study
In 2023, the City of Napa commissioned a rate study to identify the optimal rate to charge for co -collected commercial compostables collection service (including yard trimmings and food scraps). The City retained EcoNomics, Inc.  to review the current SB 13 83 compliance status of all commercial accounts, determine the costs and operational effects of full compliance, develop pacing scenarios as any businesses moved towards the necessary food scraps and yard trimmings collection scenarios to comply with SB 1383 over time, and provide a cost impact analysis to develop a rate for commercial co -collected compostables collection (food scraps and yard trimmings). As compliance with SB 1383 is attained and all businesses and multi -family properties implement the req uisite compostable programs, EcoNomics projected adjustments to the volume of total materials collected, as well as needed operational and capital cost changes needed to accommodate an expanded commercial compostable route, to create a preliminary cost rec overy rate.

EcoNomics also modeled scenarios to develop a rate for highly contaminated commercial and multi-family food scraps collection by processing these materials through the City’s depackaging equipment. This report was submitted to the City on Janua ry 26, 2024, and is titled: Projecting Collection Cost Impacts for Full SB 1383 Implementation: A Rate Study to Develop Revenue and Cost Impacts of a Clean Compostables and Packaged Organics Route. The complete report is included as Appendix 1. The results of the study were

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reviewed by City staff and it was determined that the recommended cost -recovery rate for commercial yard trimmings be ‘phased -in’ over a five -year period to reduce financial impacts on current customers that have been receiving yard trimmings service at no charge since the contract became effective. The rate study found that a cost-recovery rate could be offered to commercial food scrap customers at a lower cost than the current rate of 75% of equivalent MSW service. To ensure stability in rate revenue rece ipts from current commercial food scrap customers, the City directed EcoNomics to study the rate impacts of the cost recovery rate for food scraps over a 5-year period. The City also requested that EcoNomics determine the operational, capital, and rate impacts of container migration for customers with large numbers of yard trimmings and food scrap carts who may benefit from the use of a single 1 or 2 -yard bin to collect these materials, provided it is operationally feasible to do so. The 2025 study builds o ff of the findings of the 2024 report, including the projected revenue and cost impacts of projected full SB 1383 compliance levels, and includes recommendations from the original 2024 rate study.

In summary, the following key factors influenced the development of the new rate model and were included in the 2025 study:
• Updating the calculation of collection cost payments to identify the cost per lift value and distribute this value across all generators for cost recovery • The exclusion of the packaged organics route until the program is refined at a later date. • Modeling the migration of service levels from multiple carts to fewer bins because of increased costs per service as the rate becomes implemented over a 5-year period. • Direct field research analysis of cart weights used to improve the accuracy of specific density values.
• Maintaining separate routes for yard trimmings and food scraps until year 5.

Incorporating the above elements into the 2025 rate study required extensive additional analysis of the commercial customer base to develop service projections and model cart - to-bin migration scenarios. This analysis was coupled with field data collection to refine key assumptions, including density, and to refine service projections based on actual customer volume allocations.

1.5 2025 Rate Study Objectives
The objective of 2025 rate study is to identify the optimal, cost -recovery rate to charge for commercial and multi -family food scraps and yard trimmings collection service and to determine the impact of charging these rates on the Cit y’s overall solid waste fund. The commercial rates were developed in alignment with the following criteria:

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• Develop a financially sustainable rate that generates sufficient rate revenue to cover the collection and processing costs of the commercial and multifamily food scraps and yard trimmings programs
• Continue to provide a rate incentive (i.e. the rate for compostable collection is less than equivalent MSW collection rate) to businesses and multi-family properties that incentivizes them to incorporate new compostable collection service that is required to comply with SB 1383 without increasing overall trash bills
• Provide a cost-recovery rate for existing yard trimmings customers (that have historically received this service at no charge) whose yard trimmings collection costs will increase when it is provided at a charge
• Provide a cost recovery rate for existing commercial food scrap customers (that have received this service at 75% the charge of equivalent MSW service since 2015 before SB 1383 regulations became effective) whose food scrap collection costs may decrease when it is provided at the optimally incentivized level
• Provide a clear nexus between the cost of providing the service and the rate charged to the customers
Per the City’s direction, EcoNomics has developed a revised commercial compostable rate model that aligns with the above criteria that includes a five-year period for implementation.

During this five-year period, commercial yard trimmings and food scraps will be provided at different rates until the rates converge at the end of the five -year period. At this point, customers will be able to co -collect their food scraps and yard trimmings into the same container, if desired. The rate was developed to ensure c ost recovery by the City (i.e. the cost of providing the service to the customers is equivalent to the rate) and is designed to provide adequate compensation to NRWS for the operational impacts and equipment capitalization required to expand the food scraps and yard trimmings routes to attain full SB 1383 compliance, while providing the most economical container sizes and collection services for commercial food scraps and yard trimmings customers. The 5 -year timeline of the rate structure developed in this report allows for a rate which is:
a) matched against the needed capital expenditures to acquire all the bins needed to “right - size” the collection of compostables;
b) matched to expenditures for the acquisition of bin liners that will be paired with the replacement of carts with bins;
c) matches the timing of rate increases to the actual 5 -year deployment schedule of the identified bins and carts and;
d) structured to optimize scenarios on the overall impact on rate revenues due to charging for Yard Trimmings and the reduction of Food Scrap rate revenue.

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2 Findings

2.1 Summary of Key Findings
EcoNomics, Inc. has completed the analysis for the City of Napa’s phased 5 -year commercial compostable rate structure. This report presents the detailed findings, which are aligned with the objectives of balancing capital expenditures, operational costs, and compliance with SB 1383 requirements while providing a cost -recovery rate. In addition, recommendations for balancing the City’s Materials Diversion fund can be found in the conclusion and recommendations section. The analyses validate the assumptions, quantify impacts on rates and revenues, and propose actionable recommendations for phased implementation.

Key findings of the study include:
• 5-year commercial rates for commercial and multifamily yard trimmings and commercial and multifamily food scraps: Recommended rate tables for commercial and multifamily food scraps and commercial yard trimmings for rate years 1 (effective July 1, 2025) through 5 (effective January 1, 2029). The rates for the commercial food scraps and yard trimmings service were developed to ensure full cost recovery for the City and factor in projected cart -to-bin migration costs for properties where such a migration was operationally feasible and where an economic rate incentive exists to switch from many carts to a single bin. Projected rates also include full SB 1383 compliance by 2026. Changes in collection cost payments to NRWS, rate revenue, capital costs, operational costs and processing costs for the most likely migration scenario are included in the cost -recovery rate.
• Net cost and revenue impacts to City’s solid waste fund: A summary table showing the total net financial impact on the City’s solid waste fund that includes projected changes in rate revenue based on full SB 1383 compliance and projected cart -to-bin migration, changes in processing costs based on an expanded compostable collection route, reductions in disposal costs based on landfill diversion from expanded commercial compostables, increases in capital costs for the deployment of lined bins for food scraps, changes in collection costs paid to NRWS based on adjustments to services, and increased labor costs for expanded routes.
• An optimized cart-to-bin migration plan. The study includes a listing of customers that currently have high volumes of cart service that may benefit financially from implementing bin service. The City and NRWS can target these accounts to assist in implementing bin service and, where operationally feasible, may be able to reduce collection costs to the City and disposal costs to the generator.
• Capital cost projections for container and vehicle acquisition and deployment . The study includes a schedule of when capital acquisition of bins is likely to occur based on projected migration from carts to bins. The City can use this to plan for capital expenditures and include in future budgets. It also includes the addition of a side loader vehicle, its driver, and associated operational costs.

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• Right Sizing of Yard Trimmings Service The offering of yard trimmings collection service at no charge likely led to the acquisition of more cubic yards of yard trimmings service than likely is needed by the customers. This study estimates a reduction of yard trimmings service at 10% of their t otal cubic yardage each year to reflect 1) customers ‘right-sizing’ their service to match actual yard trimmings generation volume and 2) a portion of customers arranging with their landscaping contractor to haul -away yard trimmings instead of making use of onsite disposal through NRWS. • Packaged food scrap rates The report includes cost-recovery rates for packaged organics collection service for generators who have high levels of cross -contaminants (i.e. non- compostable materials such as plastic) in their food scrap streams.

2.2 5-year Rates for Commercial and Multifamily Yard
Trimmings Service
Effective July 1, 2025, yard trimmings will no longer be offered at no charge to commercial and multifamily customers. To develop a cost-recovery rate for yard trimmings, EcoNomics examined:
• The level of current diversion of yard trimmings from participating yard trimmings customers;
• Adjustments to collection and processing costs as a result of customers migrating from large volumes of yard trimmings carts to bins;
• Reductions in service levels as a result of being charged for the service • The proposed cost recovery yard trimmings rate will be phased in over a 5 -year period to minimize the potential for ‘rate shock’ to existing yard trimmings customers who have been receiving this service at no charge for over 20 years.

2.2.1 5-year Rates for Commercial Yard Trimmings Service EcoNomics is recommending the rates shown in Table 1 below be charged to customers on the City’s commercial yard trimmings route beginning July 1, 2025. The rates effective for January 1, 2026, and each January 1 thereafter until 2029 are also included. The rates shown in Table 1 are for five years. More information on the costs that are included in these rates can be found in Sections 2.5.1 and 3.8.1.

As shown in Table 1, the recommended rates for this service provide a rate incentive, i.e. reduction, ranging from 12 - 45% of equivalent MSW service. There is no current service for 1 cubic yard MSW, so this value was created by taking the MSW rate for a 2 cubic yard container and dividing by two in the following rate comparisons. The entire recommended commercial compostable rate schedule, which includes collection frequencies of 1-7 days per week for up to 10 containers, is included in Appendix 2.

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Table 1: Commercial Yard Trimmings Rates and MSW Rate Comparison Size 2025 2026 2027 2028 2029 MSW Rate (2029) Comparison (%) 35-gal $2.25 $4.84 $12.19 $17.11 $21.71 $48.01 45.21%
64-gal $3.13 $6.68 $15.07 $21.13 $26.94 $96.22 28.00%
90-gal $4.01 $8.52 $17.96 $25.14 $32.18 $144.09 22.34%
1 CY $7.10 $14.97 $20.63 $28.66 $35.68 $298.55 11.95%
2 CY $12.98 $27.24 $39.86 $55.39 $70.60 $597.10 11.82%
3 CY $18.86 $39.52 $59.08 $82.15 $105.52 $875.54 12.05% 4 CY $24.74 $51.79 $78.30 $108.91 $140.45 $1,136.75 12.36% 6 CY $36.50 $76.35 $116.75 $162.43 $210.29 $1,691.89 12.43% Comparison is shown as a percentage of 2029 rates relative to 2029 MSW rate.

2.2.2 5-year Rates for Multifamily Yard Trimmings Service Due to the additional labor needed for navigating the operational complexities at multifamily properties, including staging containers at the curb for collection in properties where there is inadequate access for heavy -duty collection vehicle, EcoNomics is recommending a separate set of rates for multifamily properties to distribute these sector-specific costs. The rates for multifamily properties in Table 2 below should be charged to customers on the City’s multifamily yard trimmings route beginning July 1, 2025. The rates effective for January 1, 2026, and each January 1 thereafter until 2029 are also included in the table below. The rates shown in Table 2 are phased in over the course of five-years and based on the actual costs for multifamily yard trimmings collection service.

As shown in Table 2, the recommended rates for this service provide a rate incentive, i.e. reduction, ranging from 13 - 76% of equivalent MSW service. The entire recommended multifamily yard trimmings rate schedule, which includes collection frequencies of 1-7 days per week for up to 10 containers, is included in Appendix 3.

Table 2: Multifamily Yard Trimmings Rates and MSW Rate Comparison Size 2025 2026 2027 2028 2029 MSW Rate (2029) Comparison (%) 35-gal $4.83 $10.19 $20.49 $28.57 $36.53 $48.01 76.08%
64-gal $5.71 $12.03 $23.38 $32.58 $41.77 $96.22 43.41%
90-gal $6.60 $13.87 $26.26 $36.60 $47.00 $144.09 32.62% 1 CY $9.68 $20.31 $28.93 $40.09 $50.50 $298.55 16.92%
2 CY $15.56 $32.59 $48.16 $66.85 $85.42 $597.10 14.31%
3 CY $21.44 $44.87 $67.38 $93.61 $120.35 $875.54 13.75% 4 CY $27.32 $57.14 $86.61 $120.37 $155.27 $1,136.75 13.66% 6 CY $39.08 $81.69 $125.05 $173.89 $225.11 $1,691.89 13.31% Comparison is shown as a percentage of 2029 rates relative to 2029 MSW rate.

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2.3 5-year Rates for Commercial Food Scrap Service
Currently, commercial food scrap recycling rates are offered at 75% the cost of equivalent MSW service. Effective July 1, 2025, food scrap rates will be reduced to a cost-recovery rate over a 5-year phase-in period. To develop a cost -recovery rate for comm ercial food scraps service, EcoNomics examined:
• The level of current diversion of food scraps from participating food scrap customers; • The projected quantity of food scraps from currently non-compliant commercial and multi- family customers that will need food scrap service to become compliant with SB 1383; • The projected reduction in MSW cart and bin revenue associated with expanded food scrap recycling collection programs;
• Adjustments to collection and processing costs due to customers migrating from large volumes of food scraps carts to bins;
EcoNomics is recommending the rates shown in Table 3 below be charged to customers on the City’s commercial food scrap route beginning July 1, 2025. The rates effective for January 1, 2026 and each January 1 thereafter until 2029 are also included in the t able below. The rates shown in Table 3 are based on the actual costs for commercial food scrap collection service and will decrease from current pricing levels over the five-year period.

As shown in Table 3, the recommended rates for this service provide a rate incentive, i.e. reduction, ranging from 11 - 32% of equivalent MSW service. The entire recommended commercial compostable rate schedule, which includes collection frequencies of 1-7 days per week for up to 10 containers, is included in Appendix 2.

Table 3: Commercial Food Scraps Rates and MSW Rate Comparison Size 2025 2026 2027 2028 2029 MSW Rate (2029) Comparison (%) 35-gal $31.69 $27.76 $28.64 $27.14 $25.36 $73.13 32.27% 64-gal $61.50 $51.30 $45.99 $38.39 $30.60 $146.56 19.68% 90-gal $91.10 $74.68 $63.23 $49.58 $35.84 $219.48 15.53% 1 CY $189.99 $157.24 $122.73 $91.02 $58.86 $454.76 13.30% 2 CY $375.65 $305.23 $233.68 $165.60 $97.78 $909.52 10.93% Comparison is shown as a percentage of 2029 rates relative to 2029 MSW rate.

2.4 5-year Phased-in Rate for Multifamily Food Scrap Service EcoNomics is recommending the rates shown in Table 4 below be charged to customers on the City’s commercial food scrap route beginning July 1, 2025. The rates effective for January 1, 2026, and each January 1 thereafter until 2029 are also included in the table below. The rates shown in Table 4 are based on the actual costs for multi -family food scrap collection service. These rates will ‘ramp down’ from current pricing levels over the five-year period.

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As shown in Table 4, the recommended rates for this service provide a rate incentive, i.e. reduction, ranging from 12 - 55% of equivalent MSW service. The entire recommended commercial compostable rate schedule, which includes collection frequencies of 1-7 days per week for up to 10 containers, is included in Appendix 3.

Table 4: Multifamily Food Scraps Rates and MSW Rate Comparison Size 2025 2026 2027 2028 2029 MSW Rate (2029) Comparison (%) 35-gal $34.26 $33.11 $36.94 $38.60 $40.19 $73.13 54.95% 64-gal $64.08 $56.65 $54.29 $49.84 $45.42 $146.56 30.99% 90-gal $93.69 $80.03 $71.53 $61.04 $50.66 $219.48 23.08% 1 CY $192.56 $162.59 $131.03 $102.47 $73.68 $454.76 16.20% 2 CY $378.23 $310.58 $241.98 $177.05 $112.60 $909.52 12.38% Comparison is shown as a percentage of 2029 rates relative to 2029 MSW rate.

2.4.1 5-year Rates for Packaged Organics Collection Service In addition to the commercial and multi-family food scrap rates noted above, the study also examined the cost factors for a ‘packaged organics’ rate which could be used for convenience stores, multi -family properties, and other businesses that generate an organics stream that contains extensive contamination from packaged food items, including rigid plastics, food soiled paper, film plastics, expanded polystyrene, and other non-compostable materials that would need to be removed prior to composting. The rat e for the packaged organics rates are slightly higher than the food scraps rates due to additional processing requirements of the packaged organics stream to remove contaminants. Tables 5 and 6 below show the rates for commercial and multifamily packaged organics service for one container and one pickup. A complete list of the rates can be found in Appendix 4. Expected revenue and cost values were not modeled for the packaged organics rate because of the unknown variables and unpredictable nature of forecasting packaged organics amounts.

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Table 5: Commercial Packaged Organics Rates and MSW Rate Comparison Size 2025 2026 2027 2028 2029 MSW Rate (2029) Comparison (%) 35-gal $32.02 $28.44 $29.74 $28.65 $27.34 $73.13 37.38% 64-gal $62.11 $52.57 $48.02 $41.20 $34.27 $146.56 23.38% 90-gal $92.00 $76.55 $66.19 $53.69 $41.20 $219.48 18.77% 1 CY $191.88 $161.19 $128.91 $99.67 $70.13 $454.76 15.42% 2 CY $379.44 $313.12 $246.07 $182.89 $120.33 $909.52 13.23% Comparison is shown as a percentage of 2029 rates relative to 2029 MSW rate.

Table 6: Multifamily Packaged Organics Rates and MSW Rate Comparison Size 2025 2026 2027 2028 2029 MSW Rate (2029) Comparison (%) 35-gal $34.60 $33.79 $38.04 $40.11 $42.16 $73.13 57.65% 64-gal $64.69 $57.92 $56.32 $52.65 $49.09 $146.56 33.49% 90-gal $94.58 $81.89 $74.49 $65.14 $56.02 $219.48 25.52% 1 CY $194.46 $166.54 $137.22 $111.13 $84.95 $454.76 18.68% 2 CY $382.02 $318.49 $254.37 $194.35 $135.15 $909.52 14.86% Comparison is shown as a percentage of 2029 rates relative to 2029 MSW rate.

2.5 Revenue Impacts of Proposed Rates
The recommended rates for commercial and multifamily yard trimmings and food scraps, shown in Tables 1-4 above, will have the revenue impacts on the City’s rate revenue stream as shown in Table 7 below. An overview of each of the four revenue impact areas is included in this section. Note the impacts in year one are for a period of six months, as the rate changes will be effective between July 1 – December 31, 2025, while years 2 -4 represent annual quantities. Negative values represent a reduction in revenu e from current numbers while positive values represent an increase in revenue.

Detailed analyses supporting the revenue impacts are included in subsequent sections of this report and are referenced in Table 7 below. The revenue impact summary table assumes all customers with more than one cubic yard of cart service migrate to bin service if: 1) there is a lower cost of doing so; and 2) if it is operationally feasible to receive bin service at their property. Operational feasibility for bin service of a sample of potential migration sites was assessed with assistance from NRWS’ Operati ons Manager in addition to site visits by EcoNomics staff. Using these criteria, EcoNomics projected 54 yard trimmings customers and 100 food scrap customers to migrate from carts to bins.

The overall net revenue impact in year 5 is a reduction in revenue of $659,197.73, mostly driven by the reduction in food scrap revenue received by the City as food scrap rates decrease from the current rate (75% of equivalent MSW costs).

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Table 7: Predicted Yearly Revenue Impact of Most Likely Migration Scenario

Scenario 1 Migration, Full SB 1383 compliance
Description of Revenue Impact
Year 1
Revenue
Impact
Year 2
Revenue
Impact
Year 3
Revenue
Impact
Year 4
Revenue
Impact
Year 5
Revenue
Impact
Report
Section
Describing
Detailed
Analysis
Revenue Impact 1: Increase in Rate
Revenue from Current Commercial
and Multi-family Yard Trimmings
Customers Who Currently do not
Pay for this Service
$38,248 $153,172 $211,625 $307,365 $371,321 2.5.1, 3.1.1 Revenue Impact 2: Decrease in
Rate Revenue from Current
Commercial Food Scrap Recycling
Customers Who Currently Pay 75%
of the Equivalent MSW Rate for
this Service
-$154,883 -$466,224 -$607,988 -$761,623 -$947,647 2.5.2, 3.1.2 Revenue Impact 3: Increase in Rate
Revenue from Currently Non-
compliant Commercial Generators
that Implement Food Scrap
Recycling Programs between 2025
and 2029
$86,818 $141,769 $111,810 $81,899 $51,232 2.5.3, 3.1.3
Revenue Impact 4: Decrease in
MSW rate revenue from
commercial and multi-family
generators who ‘right size’ their
MSW service levels as a result of
incorporating commercial
compostable service
-$51,198 -$112,636 -$121,647 -$128,946 -$134,103 2.5.4, 3.1.4 Net Revenue Impact by Rate
Year -$81,014 -$283,918 -$406,200 -$501,305 -$659,198 3.1.5

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2.5.1 Overview of Revenue Impact 1: Increase in Rate Revenue from Current Yard Trimmings Customers Who Currently do not Pay for this Service Currently, the City does not charge customers for yard trimmings collection service (i.e. this service is offered at no charge). As of October 1, 2024, there were 459 commercial yard trimmings customers and 90 multifamily customers receiving this service a t no charge.

EcoNomics recommends that a cost -recovery model covering the next 5 years, be implemented effective July 1, 2025. Using the commercial and multi -family yard trimming rates displayed in Tables 1 & 2, current yard trimmings customers will genera te additional revenue of $371,320.90 in year 5 or $30,943.41 in monthly rate revenue. Additional analysis supporting this revenue projection is included in Sections 2.8.1 and 3.1.1.

2.5.2 Overview of Revenue Impact 2: Decrease in Rate Revenue from Current Commercial Food Scrap Recycling Customers Who Currently Pay 75% of the Equivalent MSW Rate for this Service
As of January 2025, there were 292 commercial customers that participated in the City’s food scrap recycling program. This program is currently offered at 75% of equivalent MSW service to provide an incentive for participating in the program. This rate red uction from the 75% MSW-equivalent rate for commercial and multi-family food scraps to the cost-recovery rates shown in Tables 3 & 4 will result in a reduction in rate revenue of approximately $947,646.97 per year or $78,970.58 per month by year 5. The decrease in revenue each year is modeled in Tables 7 and 9 at the current (2025) food scrap rate. Additional analysis supporting this revenue projection is included in Sections 2.8.2 and 3.1.2.

2.5.3 Overview of Revenue Impact 3: Increase in Rate Revenue from Currently Non- compliant Commercial Generators that Implement Food Scrap Recycling Programs in 2025 There are 60 commercial and multi -family accounts that are non -compliant with SB 1383 and will need to implement a food scrap recycling program to comply. These non-compliant accounts were aggregated into a prioritized listing of accounts that need ‘onboar ding’ onto the City’s food scrap collection program and are referred to as ‘onboarding’ accounts throughout the study. To determine the revenue impacts on the City if these ‘onboarding’ accounts implement state -mandated organics recycling services, EcoNomi cs developed service projections for each of these accounts that incorporated food scrap recycling services. EcoNomics used its industry knowledge and experience implementing thousands of commercial and multi-family organics recycling programs to develop the organics service projections needed for the onboarding accounts to become compliant with SB 1383. Based on this analysis, when all non -compliant accounts are in compliance and have needed organics recycling services, using the food scrap recycling rates shown in Tables 3 & 4, these customers will generate $51,231.74 per year or $4,269.31 in rate revenue per month in rate year 5. Additional analysis supporting this revenue projection is included in Sections 2.8.3 and 3.1.3.

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2.5.4 Overview of Revenue Impact 4: Decrease in MSW rate revenue from commercial customers who ‘right size’ their MSW service levels as a result of incorporating commercial compostable service
EcoNomics developed service projections to incorporate state-mandated organics services for all currently non -compliant ‘onboarding’ accounts. Wherever possible, these service projections assumed onboarding accounts would ‘right -size’ their MSW collection service (i.e. reduce MSW service levels by the equivalent volume of organic waste that was diverted) to reduce disposal costs. The current MSW revenue being generated from all the accounts targeted for SB 1383 organics implementation is $617,149.44 yearly. The total expected revenue reduction from MSW after these targeted accounts incorporate food scrap collection service and implement ‘right -sizing’ adjustments to their MSW service will be $134,103.40 per year or $11,175.28 per month by rate year 5. The right-sizing of MSW service to account for volume of organics diverted through the compostable program represents a reduction in revenue to the City. Additional analysis supporting this revenue projection is included in Section 3.1.4.

2.6 Cost Impacts of Proposed Rates
In addition to impacts on the City’s rate revenue stream outlined above, the expansion of the commercial and multifamily food scrap and yard trimmings route to the additional customers, additional frequency of food scrap cart washing, as well as potential migration from carts to bins for some customers, will also have impacts on costs. These costs are outlined in Table 8 below. Note the cost impacts for year 1 include only six months of costs, while years 2-5 show yearly costs. Negative values in the table represent a reduction in costs while positive values represent an increase in costs.

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Table 8: Predicted Yearly Cost Impact of Most Likely Migration Scenario Scenario 1 Migration, Full SB 1383 compliance
Description of cost Impact Year 1 Cost
Impact
Year 2 Cost
Impact
Year 3 Cost
Impact
Year 4 Cost
Impact
Year 5 Cost
Impact
Report Section
Describing
Detailed Analysis
Cost Impact 1: Increase in
Costs due to Need for
Additional Staff For
Multifamily Properties
$44,485 $79,731 $49,812 $62,554 $58,696 2.6.1, 2.8.6, 3.2.1 Cost Impact 2: Increase in
Cost due to Capital Expenses
Associated with Bins and
Liners
$3,962 $11,522 $5,633 $27,796 $69,739 2.6.2, 2.8.7, 3.2.2 Cost Impact 3: Change in
Collection Cost Payments to
NRWS due to Reduction in Lift
Costs
$55,927 $98,406 -$216,589 -$245,640 -$451,364 2.6.3, 2.8.8, 3.2.3 Cost Impact 4: Increase in
Cost due to Capital Expenses
Associated with New
Collection Vehicle
$0 $0 $163,274 $163,274 $163,274 2.6.4, 2.8.9, 3.2.4
Cost Impact 5. Increase in Cost
due to Increased Frequency of
Cart Washing
$22,858 $21,520 $20,602 $17,695 $9,853 2.6.5, 2.8.10,

3.2.5 Cost Impact 6: Decrease in
Cost from Avoided Disposal -$3,044 -$3,061 -$3,073 -$3,078 -$3,075 2.6.6, 3.2.6 Cost Impact 7: Increase in
Costs due to Need for
Additional Staff to Drive
Vehicle
$0 $0 $185,000 $191,475 $198,177 2.6.7, 2.8.11,

3.2.7 Cost Impact 8: Increase in
Costs for Operating Additional
Vehicle
$0 $0 $35,000 $36,225 $37,493 2.6.8, 2.8.12,

3.2.8 Net Cost Impact per Rate Year $124,189 $208,117 $239,659 $250,300 $82,793

2.6.1 Overview of Cost Impact 1: Increase in Costs due to Need for Additional Staff For Multi-family Properties
The additional food scraps and yard trimmings collection service at multifamily properties will require additional labor support. The expected increase in service will require an additional labor cost of $10,333.33 per month starting in 2025. However, the costs represented in Table 8 are based on the estimated labor time needed for the helper to assist with the predicted number of multi -family containers in service during any given rate year.

As customers migrate and the yard trimmings service is right sized, the total number of lifts for food scraps and yard trimmings chan ges over time. Additional information on this cost can be found in Section 3.2.1.

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2.6.2 Overview of Cost Impact 2: Increase in Cost due to Capital Expenses Associated with Bins and Liners
Capital acquisition costs to the City were calculated each year for the bins and liners needed for food scraps service customers who were predicted to migrate from cart service to bin service in that year. In the current contract, bins for yard trimmings a re included and any yard trimmings customers who migrate from carts to bin incurred no additional capital charge for this equipment. The total capital cost for bins and liners the City can be expected to pay over the five-years of migration for 100 food sc raps customers is $118,651.35.

Additional information can be found in Section 3.2.2.

2.6.3 Overview of Cost Impact 3: Change in Collection Cost Payments to NRWS due to Reduction in Lift Costs
The City currently pays NRWS $454.69 per lift over baseline per year for commercial collection service. The number of lifts is expected to increase as a result of non -compliant generators adding food scrap services, decrease as a result of MSW right sizing caused by the diversion of these materials, decrease as a result of yard trimmings right sizing once there is a charge for the service, and further decrease as a result of any migration of current food scraps and yard trimmings customers. More details on lift calculations and the costs per lift can be found in Section 3.2.3.

As noted in the Section 2.5.3 of this report, a portion of the current SB 1383 non -compliant accounts may be able to reduce their MSW service after they implement a food scrap recycling program reducing the total MSW lifts by 52 as a result of right sizing MSW. The number of additional lifts as a result of increased food scraps service is 177 for a net increase in lifts of 125. This leads to an overall increase in the collection payment in 2025, but as more customers migrate in years 2 -5, the number of tota l lifts over baseline is reduced each year. By the time all predicted customers migrate in 2029, the reduction in lifts over baseline from the current values will be 882 lifts for a cost savings of $451,363.50 per year or $37,613.62 per month in year 5. Ad ditional information can be found in Section

3.2.3. 2.6.4 Overview of Cost Impact 4: Increase in Cost due to Capital Expenses Associated with New Collection Vehicle
Due to the increase in compostable collection needed to comply with SB 1383, the City anticipates the purchase of an additional side loader to service the carts on the compostable route. The purchase of this vehicle will occur in 2027. The price of the veh icle plus a 3% capital acquisition rate will be funded through a loan with a term of 60 months with a 5% interest rate. Only payments for the first 3 years of this loan (2027-2029) are shown here as the last two years of payment are beyond the scope of this rate study. The total cost of this vehicle is estimated at $721,000.00 in 2027. The yearly costs represented in Table 8 represent the sum of the monthly loan payments of $13,606.16. Additional information can be found in Section 3.2.4.

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2.6.5 Overview of Cost Impact 5. Increase in Cost due to Increased Frequency of Cart Washing
Currently, a third -party vendor provides cart washing services quarterly for food scrap containers at a cost of $12.50 per cart. After the implementation of this program, it was decided to increase cart washing to once per month which will lead to an incre ase in costs for years 1-4. However, the reduction in food scraps carts caused by migration reduces the total number of food scraps carts by a significant amount in year 5 leading to a reduction in washing cost after migration is complete. The cost for car t washing is applied to each food scraps cart. After full SB 1383 implementation and migration the estimated number of food scraps carts in 2029 is 521. After increasing the frequency of food scraps cart washing, along with the reduction in carts as a resu lt of migration, the difference in cost in 2029 is an increase of $9,853.39 per year. Additional information can be found in Section 3.2.5.

2.6.6 Overview of Cost Impact 6: Decrease in Cost from Avoided Disposal With the expansion of the commercial food scrap recycling route to all 60 currently SB 1383 non-compliant onboarding accounts, 974.48 additional tons of materials per year that are currently being disposed of as MSW will be diverted from the landfill and instead composted at the City’s MDF facility. The cost per ton of disposal in 2025 is $78, while the cost per ton of composting is $40.52, a cost -saving of $37.48 for every ton of additional materials diverted through either the commercial compostables or p ackaged organics routes. Right - sizing of MSW reduces the monthly tons of materials by 81.21 tons per month. Assuming full SB 1383 compliance, the City will reduce landfill disposal costs by $36,523.37 per year or $3,043.61 per month in year 5. Additional analysis supporting this cost reduction projection is included in Section 3.2.6.

2.6.7 Overview of Cost Impact 7: Increase in Costs due to Need for Additional Staff to Drive Vehicle
The cost of labor to drive the additional vehicle that will service food scraps and yard trimmings carts is estimated at $185,000 per year in 2027. The cost is applied a labor inflation cost of 3.5% each year for a total cost in year 5 of $198,176.62 or $1 6,514.72 per month. Additional information on this cost can be found in Section 3.2.7.

2.6.8 Overview of Cost Impact 8: Increase in Costs for Operating Additional Vehicle The operating costs of the new vehicle to service food scraps and yard trimmings carts excludes labor but includes insurance, office expenses, vehicle repair and maintenance.

The expected cost in 2027 to operate the new vehicle is $35,000 per year. An inflation rate of

3.5% is applied each year for a total cost in year 5 of $37,492.88 or $3,124.406 per month.

Additional information on this cost can be found in Section 3.2.8.

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2.7 Combined cost and revenue impacts of recommended
rates
Table 9 below combines the aggregate rate revenue impacts from Table 7 in Section 2.5 and the cost impacts identified in Table 8 in Section 2.6 to show the overall expected impact of the service and rate changes on the City’s fund.

All of the cost impacts directly apply to customer rates except for the avoided disposal costs of material that is currently being processed as MSW and will be diverted to food scraps or yard trimmings containers. The revenue impacts of the new yard trimmings revenue, the new predicted food scraps revenue from full SB 1383 compliance and the existing food scraps services cover all costs for food scraps and yard trimmings collection and processing, in addition to the interest charged in the future for any up front capital costs. The change in revenue as a result of MSW right sizing is not directly related to the customer rates, nor is the difference between current food scrap revenue and the food scrap revenue calculated in the recommended rates.

The negative net fund impact values are driven by the reduction in food scrap revenue received by the City as food scrap rates are phased in from the current rate (75% of equivalent MSW costs) to the actual costs of the service (which is less than current, incentivized rate). As the MSW rate increases each year and the food scrap rate gets closer to a cost -recovery amount each year (which is lower than 75% the cost of MSW), the rate revenue reduction compared to the revenue amount that would have come in un der a business-as-usual scenario gets more pronounced. Since this reduction in revenue impact cannot be considered a ‘direct cost’ of providing the service, it is not included in the cost recovery rates.

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Table 9: Predicted Yearly Impact of Most Likely Migration Scenario Scenario 1 Migration, full SB 1383 compliance
Description of Impact Year 1
Impact
Year 2
Impact
Year 3
Impact
Year 4
Impact
Year 5
Impact
Revenue Impact 1: Increase in Rate Revenue from Current Commercial and Multi-family Yard Trimmings Customers
Who Currently do not Pay for this Service
$38,248 $153,172 $211,625 $307,365 $371,321
Revenue Impact 2: Decrease in Rate Revenue from Current Commercial Food Scrap Recycling Customers Who Currently Pay 75% of the Equivalent MSW Rate for this Service
-$154,883 -$466,224 -$607,988 -$761,623 -$947,647
Revenue Impact 3: Increase in Rate Revenue from Currently Non-compliant Commercial Generators that Implement
Food Scrap Recycling Programs between 2025 and 2029
$86,818 $141,769 $111,810 $81,899 $51,232
Revenue Impact 4: Decrease in MSW rate revenue from
commercial and multi-family generators who ‘right size’ their MSW service levels as a result of incorporating
commercial compostable service
-$51,198 -$112,636 -$121,647 -$128,946 -$134,103
Cost Impact 1: Increase in Costs due to Need for Additional Staff For Multifamily Properties -$44,485 -$79,731 -$49,812 -$62,554 -$58,696 Cost Impact 2: Increase in Cost due to Capital Expenses Associated with Bins and Liners -$3,962 -$11,522 -$5,633 -$27,796 -$69,739 Cost Impact 3: Change in Collection Cost Payments to NRWS due to Reduction in Lift Costs -$55,927 -$98,406 $216,589 $245,640 $451,364 Cost Impact 4: Increase in Cost due to Capital Expenses Associated with New Collection Vehicle $0 $0 -$163,274 -$163,274 -$163,274 Cost Impact 5: Increase in Cost due to Increased Frequency of Cart Washing -$22,858 -$21,520 -$20,602 -$17,695 -$9,853 Cost Impact 6: Decrease in Cost from Avoided Disposal $3,044 $3,061 $3,073 $3,078 $3,075 Cost Impact 7: Increase in Costs due to Need for Additional Staff to Drive Vehicle $0 $0 -$185,000 -$191,475 -$198,177 Cost Impact 8: Increase in Costs for Operating Additional Vehicle $0 $0 -$35,000 -$36,225 -$37,493
Net Impact on Fund per Rate Year -$205,203 -$492,035 -$645,859 -$751,606 -$741,990 Estimated annual rate revenue by rate year $32.9M $36.2M $39M $42.2M $44.7M Percent of total rate revenue represented by net
impact on fund of recommended organics rates 0.62% 1.36% 1.65% 1.78% 1.66% Budgeted Rate Stabilization Reserves $227,191 $1,120,970 $2,154,277 $3,346,673 $4,287,353 Remaining Rate Stabilization Fund Balance if Used to
Offset Negative Fund Impact
$21,988 $628,935 $1,508,418 $2,595,067 $3,545,363

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2.7.1 Analysis of Recommended Program Rates and Net Impact on the City’s Solid Waste Enterprise Fund
As shown in Table 9, the total aggregate monthly revenue and cost impacts of the fully implemented commercial compostables and packaged organics route is a net fund impact of $741,990 per year by Rate Year 5 when the fully phased in rates are charged. This represents approximately 1.66% of the City’s total projected annual rate revenue of $44.7M.

EcoNomics recommends the use of rate stabilization reserves to offset the potential negative impact on the fund from noncompliant accounts and a period of time necessary for customers to “right-size” their MSW service. The projected remaining rate stabilization fund balance after the cost of charging the recommended rates is included for each year in Table

9. The rate stabilization fund is projected to have a balance of $3.6M by the end of year 5.

These recommendations are outlined in Section 4.

2.7.1.1 Difference in Expected Costs vs. Phased in Rates for years 1-4 The recommended cost recovery rates cover the predicted direct costs for each compostable service. Because these rates are phased in over time in attempt to limit the impact of these rate changes on the customer, there is a difference in years 1 -4 in the r ate revenue received vs. the actual cost of providing the service. The expected costs of providing the service vs. actual revenue received by the programs for each rate year is examined in Table 10 below. This table shows the difference in revenue received vs. the costs associated with yard trimmings and food scraps service each year. Because current food scraps rates cover the costs of providing the program and also anticipate for higher level of compliance in future years, the projection leads to a net surplus in revenue for years 1-4 that will ensure the City is able to maintain sufficient reserves to address unforeseen variances in service levels.

Table 10: Expected Costs vs. Revenue 2025-2028
Description Year 1 Year 2 Year 3 Year 4
Expected Costs $363,379.80 $789,677.27 $753,974.29 $797,459.20 Revenue $583,709.57 $1,055,768.50 $942,497.70 $854,690.95 Net Impact $220,329.77 $266,091.22 $188,523.40 $57,231.75

2.8 Rate Impacts on Individual Customers
The following section examines the projected impact of the proposed rates on food scrap recycling and yard trimmings customers, both those who currently have service as well as the onboarding customers referred to in Section 2.5.3. The average rate across all customers within Scenario 1 decreased by $43.42. The range of rate differences between these customers went from a cost savings of $2470.6 for a food scraps customer who migrated to bins, to a cost increase of a yard trimmings customer who currently receives the service at no charge to a rate of $621.07 per month.

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2.8.1 Rate impact on current customers: Commercial and Multi-family Yard Trimmings Recycling Customers
Currently, yard trimmings collection service is offered at no charge to 549 customers. All current participants in the City’s yard trimmings recycling program would see an increase in the costs they are paying for this service. Currently, these customers a re paying $0 per month. When the commercial yard trimmings rate becomes effective on July 1, 2025, the average cost for yard trimming collection service will be increased to $11.49 per month and will gradually increase to $55.16 per month by January 1, 2029 as shown in Table 7.

Customers can mitigate this rate impact by:
• Right-sizing of MSW: All of the current commercial yard trimmings customers that generate 1) food scraps and 2) only had yard trimmings collection service, will be required to place food scraps into a food scraps recycling container. By placing their food scraps into a newly establi shed food scrap recycling program, the customers will divert all their food scraps from their existing MSW container. Depending on the volume of food scraps a customer can divert from their MSW containers they may be able to reduce the size and/or the service frequency of the MSW container, and reduce disposal costs. • Cart to Bin Migration: Approximately 231 customers have more than one cubic yard of aggregate cart collection service for food scraps or yard trimmings. Based on the recommended rates for both yard trimmings and food scraps included in Appendix 2, some of these customers will see a financial incentive to consolidate their many carts into a single bin with a higher volume capacity (i.e. a cubic 2-yard bin has the volumetric equivalent to six 65-gallon carts). Based on migration projections, there are 154 cus tomers with more than 1 -cubic yard of cart service that will realize a rate reduction, provided that it is operationally feasible to provide bin service to the property. • Right-sizing yard trimmings container: Yard trimmings service has been offered at no charge and customers had little incentive to modulate service based on actual yard trimmings generation levels, seasonal or otherwise. When this service is offered at a charge, customers will have an incentive to reduce service to match actual yard trimmings generation levels. The effects of right sizing are examined in Section 3.3 below.

2.8.2 Rate impact on current customers: Commercial and Multi-family Food Scrap Recycling Customers
The recommended cost-recovery commercial food scrap rate, that will be phased-in over 5- years, would be charged to 292 source-separated food scrap customers, who are currently paying 75% of the cost of equivalent MSW service. Currently customers are paying anywhere between $36.01 - $4,690.14 per month with an average rate of $316.58 per month. All current participants in the City’s food scrap recycling program would see a reduction in the costs they are paying for this service. With the implementation of th e recommended commercial food scrap rates shown in Tables 3 & 4, these customers will be paying between $24.18 and $736.57 per month with an average rate of $74.27 per month by rate-year 5. This represents a cost between 17 - 67% less for food scrap recycling service with a mean