Unique Characteristics of Project: Napa’s recycling program aims to be a leader in promoting diversion of its customer’s solid waste – its “Zero Waste Vision.” Additionally, given that the City owns it recycling facility and contracts out operations to a local waste hauler, this model provides the City with additional flexibility to promote and execute upon innovative programs. NHA’s tasking during the project covered diligence and evaluation of many interesting ideas with respect to new technology and state and federal funding sources.
Executive Summary: On October 20, 2016, the City of Napa raised $12.23 million through its 2016 Solid Waste Revenue Bonds (Green Bonds). Eric Scriven and Mike Meyer of NHA served as the city’s municipal advisor on its Napa Renewable Resources Project (“NRRP”) – a comprehensive, multi-staged project designed to help Napa be a leader in the State of California in solid waste diversion in compliance with AB 939, AB 341, and other State regulations. NHA worked closely with staff over a three-year period to help navigate the planning and regulatory hurdles prior to securing the funds to build the NRRP’s first phase project – a $10 million covered composting concrete bunker system that will convert organics, including food scraps, into methane gas used for refuse collection trucks. NHA guided the city towards selection of key members of the financing team, as well as coordinated for and prepared the city to deliver a summary of the credit to S&P. The city was successful in securing a credit rating upgrade from “AA-” to “AA/Stable,” which translated to a low Federally taxable interest rate of 2.98% on this 20-year transaction.