Solid Waste and Recycling Collection Rates
2025-2029
Rate Study and Proposed Rate Notice
April 15, 2025
ATTACHMENT 3
Solid Waste & Recycling Collection
Rates – 2025-2029
1. Quick Overview of Solid Waste & Recycling
Enterprise Fund (SWR Fund)
2. Financial Position of SWR Fund
3. Primary Drivers for Rate Adjustments
- NRWS Contract & Impact of SB 1383 Compliance
- Major Capital & System Improvements
- Dramatically Increased Fuel & Electricity Costs
4. Proposed Solid Waste Rate Adjustments
5. Next Steps – Direction from Council
ATTACHMENT 3
Collection Services Provided
• 5 major “Lines
of Service” for
Collection:
1. Residential
2. Commercial
3. Roll-off Box
4. Multi-Family
5. NVUSD
ATTACHMENT 3
4 5-Year Collection Rate Revenue by Line of Service
$4,179,478 $4,550,155 $4,977,371 $5,148,235 $5,232,366
$7,127,490 $7,759,221
$8,881,369 $9,310,131 $9,499,374
$1,915,570
$2,482,959
$2,865,882 $3,251,538 $3,551,714
$9,813,898
$10,928,790
$11,809,030
$12,213,579 $12,380,077
$334,640
$345,646
$350,925
$371,917 $386,909
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
19/20 20/21 21/22 22/23 23/24
Collection Rate Revenue by Service Line – FY19/20 – FY23/24 Roll Off Commercial Multi-Family Residential NVUSD
$23,371,076
$26,066,771
$28,884,577
$30,295,400 $31,050,440
ATTACHMENT 3
Programmatic Status
• Weekly Residential Curbside Service – Trash (Landfill), Recycling & Compost Service (including Food Scraps/Soiled Paper since 2015) • 4 streams of Commercial Service – Trash (Landfill), Recycling, Greenwaste (Yard Trimmings) & Food Scraps Composting (since 2015) • Roll-Off Debris Box – Trash and Multiple Recyclable/Compostable Materials (includes Clean Wood, Concrete, Dry Wall, Carpet, Metals, Cardboard, Mixed Recyclables, Dirt, Pomace & Yard Trimmings) • City Diversion Rate - 65% overall landfill diversion (recycling and composting) for 2024 (70% by State formula). City and State goal is 75% level (or more).
ATTACHMENT 3
Materials Diversion Facility (MDF)
Built: 1993; Expanded 1997; City Purchased 2004
ATTACHMENT 3
Compost Operations
Greenwaste Truck Organics Pre-
Processing Line
Covered Compost (CASP) System
ATTACHMENT 3
Recycling Operations
Processing Area
Processing Area
Materials Storage
ATTACHMENT 3
Tonnage Processed at MDF in 2024
• Recycling = 49,400 tons
• Composting = 93,800 tons
• Construction & Demolition = 18,500 tons
• Wood = 10,000 tons
• Other Materials (e-waste, tires, bulky items) = 600 tons • Facility Residue (disposal) = 13,900 tons
• 94% overall facility diversion (recovery) rate
– (Note: 2% improvement vs. 2023)
• Total Inbound Tons = 172,300 (vs.103,500 in 2006; 66% increase!)
ATTACHMENT 3
2. FINANCIAL POSITION OF
SWR FUND
Section Introduction or Summary
ATTACHMENT 3
SWR Fund Overview – FY25/26 Expenditures
11 Payments to Contractor
(NRWS), $35,122,000 ,
67%
Disposal (Landfill) Tip Fees,
$4,165,000 , 8%
Payments for Materials (including
High-value CRV Materials),
$2,400,000 , 4%
Transfer to Non-Recurring Costs
(Grant and One-Time Projects),
$500,000 , 1%
Other Expenses (including City admin
support, liability insurance, banking
fees, etc.), $3,516,538 , 7%
Salaries and Wages (including
benefits), $1,711,647 , 3%
Transfer to Street Resurfacing ,
$1,317,000 , 2%
Debt Service for $12.5M in Capital
Improvements to MDF, $873,700 ,
2%
Transfer to CIP Reserves,
$3,000,000 , 6%
FY 2025/26 Budgeted Expenditures (Total = $52,605,885)
ATTACHMENT 3
SWR Fund Overview—FY25/26 Revenue
12 Collection Service
Charges
$31,001,000
59%
MDF Gate Fees
$5,300,000
10%
Materials Sales
$10,600,000
20%
Misc (including fees,
interest, etc.)
$475,900
1%
Budget Shortfall $5,228,985
10%
FY 2025/26 Proposed Budgeted Revenues (Total = $43,376,900)
ATTACHMENT 3
Why are Rate Increases Needed?
13 $40,000,000
$45,000,000
$50,000,000
$55,000,000
$60,000,000
$65,000,000
FY24 Actuals FY25 Projections FY26 Budget FY27 Budget FY28 Budget FY29 Budget FY30 Budget Revenues vs Expenditures Trend (No Rate Adjustments)
Revenue Expenditures
• Last increase was January 2022
• For proposed FY2025/26 budget, expenditures will
exceed revenues ($5.2M in FY 25/26; $12M in FY29/30)
• With no rate increase, current reserves would be
exhausted by end of FY2026/27
ATTACHMENT 3
3. PRIMARY DRIVERS OF
PROPOSED RATE ADJUSTMENTS
Section Introduction or Summary
ATTACHMENT 3
3 Primary Drivers for Rates
1. NRWS Contract & Impact of SB 1383
Compliance
2. Major Capital & System Improvements
3. Dramatically Increased Fuel &
Electricity Costs
ATTACHMENT 3
State-of-the-art (& award winning!)
Covered Aerated Static Pile (CASP)
composting system (operational January 2020)
ATTACHMENT 3
2022 NRWS Contract Amendment
Approved in October of 2022, this NRWS Contract Amendment addressed and accomplished the following:
(1) Operating & emission testing costs for $10M Covered Aerated Static Pile (CASP) composting system at MDF
(2) Ongoing operating & maintenance costs for $2.5M stormwater management system at MDF
(3) Fixed annual labor cost increases at 3.5% per year to CY2031 (4) Fixed non-labor annual increases at 2.5% per year to CY2031 * Non-labor annual increases have a 50/50 shared “safety valve” provision when Bay Area CPI exceeds 5% in a given year as occurred in 2023 (5) Set up an every-other-year “Reconciliation Review” process when residential, commercial and/or roll-off service growth exceed certain thresholds (currently a combined payment to NRWS of $972K/year).
Added together, the amendment increased the base
contract payment to NRWS by approximately
$1.87M/year ($900K/year + $972K variable payment
based on growth in service).
ATTACHMENT 3
SB 1383 NRWS Contract Amendment
SB 1383 NRWS Contract Amendment
Adopted April 18, 2023
ATTACHMENT 3
Implementation Dates
SUMMARY OF SB 1383
2022
• Regulations take effect
• State enforcement on jurisdictions begins
2024
• Regulations require jurisdictions to take
enforcement
2025
• 75% reduction in organics disposal
• 20% increase in edible food recovery
ATTACHMENT 3
1) Universal Compostable Organics:
2) Ordinance/Enforcement Adoption:
3) Edible Food Recovery Program:
4) SB 1383 Procurement Requirements:
5) Education, Training & Outreach:
6) Secure Capacity for Composting,
Recycling & Edible Food Recovery:
7) Monitor Compliance & Enforcement:
8) Have Accurate Compliance Records:
Dec 2021 Overall SB 1383 Compliance Score:
* Note five checkmarks indicates full SB 1383 compliance December 2021 SB 1383 Status
Current vs. Full Compliance Summary
ATTACHMENT 3
21 SB 1383 – Current Compliance Status
Current Overall SB 1383
Compliance Score:
• 99% of commercial accounts
subscribed to organics
collection service
• 31 out of 47 multi-family
(apartment) complexes with
no organics collection service
now subscribed (11
remaining by end of CY2025)
• Need Biomass Gasification
or Anaerobic Digestion to
fulfill SB 1383 procurement
requirement for use of
organic derived renewable
energy and/or fuel.
ATTACHMENT 3
HIGHLIGHTS OF
SB 1383 CONTRACT AMENDMENT:
New Collection Truck & Driver:
- New commercial compost collection vehicle ($523k
less $113k SB 1383 grant = $410k)
- New Thursday through Monday route
- 1600 new wheeled cart for organics
(200 lockable)
- Quarterly cleaning of organics equipment
* Note: Proposed 2025/26 budget includes increased
cleaning schedule for commercial food carts from quarterly to monthly cleaning by NRWS.
ATTACHMENT 3
HIGHLIGHTS OF
SB 1383 CONTRACT AMENDMENT:
New NRWS Staff:
- Two NRWS Recycling Outreach Specialists
- 1.5 new NRWS CSRs (0.5 NCRWS/County)
- Two NRWS Compost Equipment Operators
- New staff to educate, support, monitor, conduct route reviews/audits & report on SB 1383 progress;
operate new organics processing equipment
ATTACHMENT 3
HIGHLIGHTS OF
SB 1383 CONTRACT AMENDMENT:
New Processing Equipment :
- $1.45M optical sorter (85% City/15% NRWS)
- SB 1383-required quarterly facility audits
- $2.6M in new organics processing equipment
($1.5M grant-funded)
- In FY24/25, projected to add $216k new material
sales revenue; avoid $460k in disposal costs &
reduce transportation costs by $154k ($830k total)
ATTACHMENT 3
Second Optical Sorter at MDF
ATTACHMENT 3
Slow-Speed Shredder
($920k – Grant Funded)
ATTACHMENT 3
Density Separator
($392k Grant Funded)
ATTACHMENT 3
SB 1383 NRWS Contract Amendment
Total Impact = Approximately $2.8M per year
• Reset NRWS Contract Base : current collection rates at just over $31M per year, $2.8M translates into 9% of added cost per year. Contract terms are through 2031.
- 3.5% per year in labor cost escalations
- 2.5% per year in non-labor costs
- "Safety Value" 50/50 shared cost provision if Bay Area CPI is above 5% • Unfunded State Mandate: SB 1383 is state law and generally an unfunded mandate. Napa is ahead of many jurisdictions in implementing SB1383 and also understanding costs of full compliance with SB 1383.
• Key Local Climate Action Step: SB 1383 a key local
program for Countywide Climate Action goals since
methane is 30-50 times GHG impact vs. CO2.
ATTACHMENT 3
2. Capital Improvements at MDF
• In 2016, the City issued $12.5M in Solid Waste
Revenue Bonds for the following:
- $10.0M – “Covered” Composting system to comply with State regulations to process food scraps and air district
regulations for emissions
- $2.5M – Stormwater system improvement to comply with
Statewide “Compost Order” from Regional Board
- $2.0M – Covered processing and storage area for recyclables to comply with stormwater discharge permits
• Increased annual expenses by approximately
$900/year for debt service
• Requires a minimum 1.25x coverage ratio which
must be considered for rate-setting
ATTACHMENT 3
CIPS COMPLETED IN FY2023/24 & FY2024/25 AT MDF
Materials Diversion Facility
Exterior Concrete Pads ($2.25M over 6 years)
New Scale
($80K)
ATTACHMENT 3
ADDITIONAL SWR CIP PROJECTS
COMPLETED IN FY2023/24 & FY2024/25
New MDF Recycled Water Line Connection ($125K)
Materials Recovery Facility (MRF) Building (at MDF)
Exterior Painting ($75K)
Industrial Stormwater Mitigation Improvement (Phase 1)
($675K)
ATTACHMENT 3
PLANNED SWR CIPS FOR FY26 AND FY27
City Corp Yard SWR Equipment Storage Bay
($150K )
Raising Height of MDF Compost Retention
Pond ($500K)
Industrial MDF Stormwater Mitigation
Improvement Ph 2 ($750K)
12 KV Electrical System Installation at MDF
($2.8M)
ATTACHMENT 3
HIGHLIGHTED SWR CIPS FOR FY27/28-FY29/30
Materials Diversion Facility Improvements ($1.5M)
Biomass (Wood Waste) Gasification CEQA Study ($200K)
Potential $28+M Project at City Materials Diversion Facility CASP (Covered Aerated Static Pile)
Compost System 2.0 ($13M)
CASP 1.0
(2.0 Similar)
ATTACHMENT 3
34 3. Dramatically Increased Fuel & Electricity Costs
History CY2019-CY2024
Year Fuel Energy Total
Cost
Change
vs.
Previous
Year
CY2019 $846K $377K $1.22M
CY2020 $742K $447K $1.19M -$0.03M
(-2.5%)
CY2021 $787K $530K $1.32M +0.13M
(+11%)
CY2022 $996K $622K $1.62M +0.3M
(+23%)
CY2023 $1.48M $689K $2.17M +0.55M
(+34%)
CY2024 $1.58M $878K $2.46M +0.29M
(+13%)
CY2019
vs.
CY2024
+0.73M +$0.41M +1.24M
Projections FY2025/26-FY2029/30
• Fuel increased at 5.35%/year
• Electricity increased at
11%/year (per CPUC projection)
FY2025/26: Fuel = $1.66M
Energy = $0.97M
Total = $2.63M
FY2026/27: Fuel = $1.75M
Energy = $1.08M
Total = $2.83M
FY2027/28: Fuel = $1.84M
Energy = $1.20M
Total = $3.04M
FY2028/29: Fuel = $1.94M
Energy = $1.33M
Total = $2.63M
FY2029/30: Fuel = $2.04M
Energy = $1.48M
Total = $3.52M
More than doubled over the 5-year period
ATTACHMENT 3
4. PROPOSED SOLID WASTE
RATE ADJUSTMENTS
Section Introduction or Summary
ATTACHMENT 3
Number of Households with Different
Cart Sizes – CY2019 to CY2024
36 4,978 5,009 4,956 4,940 4,875 4,719
11,446 11,354 11,336 11,360 11,282 11,177
5,305 5,380 5,552 5,654 5,842 5,970
615 696 749 783 845 902
-
5,000
10,000
15,000
20,000
25,000
CY2019 CY2020 CY2021 CY2022 CY2023 CY2024
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
22.439 22,593 22,737 22,844 22,76822,344
ATTACHMENT 3
Monthly Proposed Residential Rates 2025 to 2029 (does not show 95-gal) Proposed Rate Adjustments
37 Level of
Service
Current
(since
2022) July 2025 Change Jan 2026 Change Jan 2027 Change Jan 2028 Change Jan 2029 Change Total
Change
Avg
Monthly
Change
per Rate
Year
20-gallon $30.54 $34.20 $3.66 $37.63 $3.43 $40.64 $3.01 $43.89 $3.25 $46.52 $2.63 $15.98 $3.20 35-gallon $38.29 $42.88 $4.59 $47.17 $4.29 $50.95 $3.78 $55.02 $4.07 $58.32 $3.30 $20.03 $4.01 65-gallon $58.71 $65.76 $7.05 $72.33 $6.58 $78.12 $5.79 $84.37 $6.25 $89.43 $5.06 $30.73 $6.15 Monthly Cost for Commercial/Multi-Family Service
(2 cubic yard bin picked up weekly)
Current
(Since 2022) July 2025 January 2026 January 2027 January 2028 January 2029 Cumulative
Increase
$ 597.10 $ 668.75 $ 735.63 $ 794.48 $ 858.04 $ 909.52 $ 312.42 Proposed Rate Adjustment by Percentage for All Rates including Commercial/Multi-Family and Roll-Off (with exception of Roll-Off MSW) • Jul 1, 2025—12%
• Jan 1, 2026—10%
• Jan 1, 2027—8%
• Jan 1, 2028—8%
• Jan 1, 2029—6%
ATTACHMENT 3
Enhanced SWR Low/Fixed Income
Assistance Program
• Eligible if qualified for PG&E “CARE” Program
• Program in place since since 2019 at $10/month for up to 1,250 households
• Recommended Increase to $15/month for up to 1,500
households (1,222 households currently participating in SWR’s RateShare program)
• Revenue source is material sales (not rate revenue)
ATTACHMENT 3
Napa’s Rates Will Remain Below
Regional Average
39 65 Gallon Monthly Residential Service Cost Comparison Chart based on current jurisdiction rates, many subject to annual adjustment prior to January 2026. Most common 35-gallon residential rates not utilized in above chart because several jurisdictions do not have multiple service size options smaller than 65-gallon and thus are not comparable residential rate structures.
ATTACHMENT 3
Material Sales Revenue Volatility
40 $50
$100
$150
$200
$250
$300
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
10-year Average Material Sales Price Per Ton for Residential Recyclables $121
$268
Maximum volatility of 121% from low of $121/ton to high of $268/ton Materials sales revenue projection = $10.6M/year; 60% drop = $6.4M loss ➢ Rate Stabilization Fund Needed
ATTACHMENT 3
Replenishment of Solid Waste
Reserves & CIP Investments
41 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $7,786,979
$9,526,938 $9,483,677 $9,784,818 $10,139,012 $10,522,194 $11,005,030 $537,952
$537,952 $537,952
$3,337,952
$7,637,952
$3,637,952 $1,837,952
$65,250
$393,043
$1,547,268
$3,759,154 $6,821,681
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Current End of FY25 End of FY26 End of FY27 End of FY28 End of FY29 End of FY30 Projected Solid Waste Fund Reserve Balances with Proposed Rate Adjustments Liability Operating CIP Rate Stabilization
ATTACHMENT 3
5-year “phase-in” for Commercial Compostable Organics
SB 1383 Mandatory Commercial Organics Rate Study
• Current commercial organics collections rates have a 75% of MSW (landfill) charge for commercial food scrap collection and “no charge” for commercial yard trimmings service.
• SB 1383 requires all commercial generators (including multi-family served as commercial accounts) to subscribe and be provided access to collection of compostable organics.
• Attachment 2 to staff report is a detailed study for phased-in consolidation of current commercial compostable organics service.
1 65-gallon
3X week service
– charge per
month
Current July 2025 Jan 2026 Jan 2027 Jan 2028 Jan 2029
Commercial MSW
(Landfill)
$288.03 $323.23 $355.55 $383.99 $414.71 $439.59
Commercial Food
Scraps
$216.45 $183.16 $151.22 $119.00 $88.40 $54.82
Food Scraps
savings vs. MSW
25%
savings
43%
savings
57%
savings
69%
savings
79%
savings
87%
savings
Commercial Yard
Trimmings
No
Charge
$9.36 $20.03 $30.37 $42.28 $51.16
ATTACHMENT 3
5. NEXT STEPS – DIRECTION FROM
COUNCIL
Section Introduction or Summary
ATTACHMENT 3
Next Steps – Proposition 218 Notice
• Attachment 3 to
Staff Report
• Proposition 218
Notice includes:
1. Proposed Rates
2. Reasons/Data
behind Proposed
Rate Adjustments
3. Information on
Public Hearing
(June 17th)
4. Protest Form &
Instructions
ATTACHMENT 3
Next Steps – Proposition 218 Notice
• Modeled on 2019
SWR Rate Notice
& in fulfillment of
promise to 2020
Napa Grand Jury.
• Incorporates 2019
Napa Taxpayers
requested
revision to
wording adjacent
to check box on
protest form.
ATTACHMENT 3
Council Direction – Issuance of
Proposition 218 Notice
• Authorize City staff to provide written notice by mail of the proposed update to solid waste and recycling
collection rates in compliance with all requirements
of state law, and
• Schedule a public hearing to consider adoption of
updated solid waste and recycling collection rates
at City Hall, 955 School Street on June 17, 2025, at
6:30 pm.
ATTACHMENT 3