Napa's Innovative Diversion Based Contract: An Update

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Napas Innovative Diversion Based Contract An
Update

• Presented by
• Tim Dewey-Mattia
• Napa Recycling Waste Services
• Sara Gallegos
• City of Napa

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• October 1, 2005 City and NRWS enter into
  10-year diversion based contract
• City owns MDF, NRWS provides collection services
  and operates the facility
• City collects rate , pays disposal at transfer
  station (60/ton)
• Share of material sales revenue
• 70 City/30 NRWS

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MDF Flow and Weight Points
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Compensation for Contractor (NRWS)

• Components of Compensation
• Operating and Capital Cost Payments (Based on
  2004 RFP proposals CPI/PPI)
• Base Profit Margin (automatic 3)
• Annual Diversion Incentive Payment (or Debit)
  Incentives above 50, Debit below 50
• Share of Material Sales Revenue 70 City/30
  Contractor (NRWS)
• Processing Fee for Throughput Over Baseline
  (processing above 80,550 tons/year)

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• Successes
• Close partnership on all levels
• Increased diversion, new programs
• Increased processing totals at facility
• Increased revenue from material sales

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State leaders in e-waste recycling

• Most per capita 1.1 million pounds in 2007
• Over 100 tons e-waste appliances at Jun 08
  event REUSE included

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Sample of Partnership and Innovation Color
Glass Sorters
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Challenges

• Diversion incentive has floundered
• Revenue split leads to marketing challenges
• City new garbage company
• Funding issues with new programs

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Lessons

• Brings jurisdiction and contractor together as
  diversion team
• Its good business to recycle
• Limitations Citys inability to fund new
  programs because of added costs
• With Zero Waste, may need to come up with new
  rate structure

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Solutions

• Local will Zero Waste Ordinance
• Action on State level
• Fix regulatory hurdles for composting permitting,
  take away subsidies for landfilling
• increase diversion requirements to 75
• Recognize recycling/compostings powerful place
  in the fight against climate change

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Contact info Tim Dewey-Mattia Public
Education Manager NRWS/NCRWS [phone]
x1204 tim_at_naparecycling.com www.naparecycling.com
Sara Gallegos Materials Diversion Analyst City
of Napa [phone] sgallegos_at_cityofnapa.org