TO: Board of Supervisors
FROM: Steven E. Lederer, Director of Public Works
REPORT BY: Kat Chambers, Staff Services Analyst II
SUBJECT: Public Hearing - Zone Two Solid Waste and Recycling Rates
RECOMMENDATION
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Adopt a Resolution increasing rates by ~18% effective July 1, 2026 for solid waste services in Garbage Zone Two, in conformance with Agreement No. 7996 between Napa County and Berryessa Garbage Service, Inc. (No Fiscal Impact: Garbage Zone Two; Not Budgeted; Discretionary)
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BACKGROUND
This item is not subject to the voting requirements of Article XIIIC, Voter Approval for Local Taxes, of the California Constitution, as amended by Proposition 26, because the fees are imposed by a private third party and not the County, under the franchise agreement 7996 as granted by the County to BGS. Article XIIIC applies only to new fees imposed by a local governmental entity.
On July 9, 2013, the Board of Supervisors approved Napa County Agreement No. 7996, a new franchise agreement for residential and commercial solid waste and recycling collection and disposal for Franchise Zone Two, between Napa County and Berryessa Garbage Service, Inc. (BGS). As part of the Agreement, rates and a rate methodology were established for the rates charged to the rate payers in Garbage Zone Two, located in the unincorporated area of Lake Berryessa. The Agreement term was originally set for July 18, 2013 through December 31, 2028.
On December 18, 2018, the Board approved Amendment No. 1 to Agreement No. 7996, extending the franchise term to December 31, 2036. Per the 2018 staff report, the agreement extension enabled “future financial stability and coordinated timeframes (commencing 2036) to meet State regulatory compliance requirements for future post closure action planning for the Steele Canyon Landfill that also enables operations of receiving recyclables.”
Under the Agreement, BGS may adjust the rates charged to its customers by submitting a justified rate proposal to the Board of Supervisors by April 15, with any approved changes taking effect July 1 (Section 16 and Exhibit D). The Department of Public Works received such a proposal from BGS regarding operational costs associated with recycling and solid waste collection and disposal services in Garbage Zone Two.
Staff completed their review of the proposed increase pursuant to the Franchise Agreement and, under the rate adjustment guidelines in Section 14.03, determined that a rate increase of approximately ~18% beginning July 1, 2026 for both residential and commercial collection was justified and generally consistent with the Consumer Price Index (CPI) increases (cumulatively ~24.20%) since the last rate adjustment in November of 2018:
Year (Dec) CPI
2024 2.80%
2023 3.70%
2022 5.60%
2021 3.20%
2020 1.70%
2019 3.30%
2018 3.90%
BGS currently services approximately 500 residential and 60 commercial accounts. Landfill (trash) and recycling collection services are available for a fee. BGS does not currently provide a separate compost (organics) collection service to its residential and commercial customers. Due to this, compostable organic materials are mixed in with regular trash, and the compostable organics and trash mix is disposed of at landfills.
BGS does not currently provide wheeled carts for residential collection service. Residents must provide their own “cans”. BGS provides bin services, that includes a bin rental fee, for commercial customers. Recycling and trash collection service is mandatory for all commercial entities in Zone Two. Napa County has until 2036 to conform with Senate Bill 1383 requirements for blue-green-grey color-coded carts and bins. Drop off services at the Berryessa Transfer Station are available to the public for various fees depending on item type.
Notice of the public hearing and consideration of the rate adjustment was published in the Napa Valley Register and on the County website on April 2 and April 9, 2026. The public notice indicates that all relevant documents regarding the proposed rate increase will be available through the Clerk of the Board. Pursuant to the Franchise Agreement, BGS has posted the change of rates on its website and will provide written notice to customers with their May billing statement if the rate adjustment is approved.
1. Open Public Hearing.
2. Staff reports.
3. Public comment.
4. Close Public Hearing.
5. Motion, second, discussion and vote on the item.
FISCAL IMPACT
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Is there a Fiscal Impact? |
No |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
Zone Two Garbage |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Approving the rate increase allows for recovery of costs associated with performing a critical service. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
None |
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Consequences if not approved: |
BGS would not be able to recover their incurred costs associated with the collection and disposal of waste. The County would be in breach of its contract with BGS. |
Strategic Initiative: Build Healthy, Connected Communities
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: These fees are not subject to the California Environmental Quality Act pursuant to Title 14 of the California Code of Regulations, Section 15273(a)(1) and (2).