To: Honorable Mayor and Members of City Council
From: Phil Brun, Utilities Director
Prepared By: Kevin Miller, Materials Diversion Administrator
TITLE:
Title
Budget Adjustment to Materials Diversion Fund for FY2019/20
LABEL
RECOMMENDED ACTION:
Recommendation
Approve a revenue budget increase of $2,504,000 and an expenditure budget increase of $3,715,000 in the Materials Diversion Fund and an expenditure budget decrease of $300,000 in the Non-Recurring Materials Diversion Fund, as documented in Budget Adjustment No. BE2002501.
Body
DISCUSSION:
The Materials Diversion Facility (MDF) receives and processes all residential and commercial source separated recyclables and compostable organics generated within the City and collected by the City's hauler, Napa Recycling & Waste Services LLC (NRWS). The MDF also receives and processes materials delivered by haulers servicing surrounding jurisdictions and by self-haul customers. The volumes of compostable and recyclables materials received and processed at the MDF in calendar year (CY) 2019 have greatly exceeded historical levels and triggered the need for a budget adjustment. More specifically, amount of high-value California Redemption Value (CRV) delivered to the City's MDF is a primary driver in the recommended mid-year budget adjustment within the Solid Waste and Materials Diversion Enterprise Fund (MDF Fund).
The mid-year budget adjustments recommended by City staff for current FY2019/20 are as follows:
* $1,048,000 increase in collection service rate revenue based on data of six-month actuals as well as the impact of approved collection rates as of January 1, 2020.
* $843,000 increase in fee revenue due to increased self-haul gate fees, increased contractual gate fees and higher than expected volumes of compostable organic material delivered to the MDF for processing.
* $613,000 increase in materials sales revenue driven primarily by amount of high-value CRV containers delivered to MDF from a local...
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