Item 16 - Agreement for the Waste Infrastructure System Enterprise

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Waste Infrastructure System Enterprise Agreement with the County of Orange April 21, 2026 Page 2 5 7 0 0 EXECUTIVE SUMMARY On January 27, 2026, the County of Orange adopted a successor agreement to the existing Waste Disposal Agreement (WDA) that governs disposal of municipal solid waste at County landfill facilities. The new agreement, titled the Waste Infrastructure System Enterprise (WISE) Agreement, establishes a revised landfill disposal rate structure and operational framework intended to address increased regulatory, operational, and capital costs associated with landfill management. The WISE Agreement was approved by the Orange County Board of Supervisors and will become effective if jurisdictions representing at least 50% of the landfill tonnage delivered to County facilities ratify the agreement. Participating cities must approve the agreement by April 30, 2026 to receive the negotiated rate structure identified below in Figure 1 or else be charged rates that are higher than the negotiated rates. As of April 14, 2026, 27 cities have adopted the WISE Agreement, surpassing the 50% threshold. Cities that fail to enter into the WISE Agreement will be charged the non-WISE rate of $92.70/ton rate (as opposed to the $67.00/ton WISE rate), beginning July 1, 2026. Although the WISE Agreement increases landfill disposal costs by 53%, the City has limited alternatives due to the County’s control of the regional landfill system. Redirecting waste outside the County is economically unfeasible: Riverside landfills are at capacity, and the Orange County City Managers Association (OCCMA) consultants estimate that outsourcing to Los Angeles or San Diego would cost approximately $100 per ton. To mitigate the near-term financial impact of the increased disposal costs, staff recommends a one-year rate stabilization strategy and execution of a Memorandum of Understanding (MOU) with Republic Services that keeps trash disposal rates subsidized for the near term and initiating a Proposition 218 process to update refuse collection rates in a manner that reflects the increased landfill disposal costs in Fiscal Year 2026- 27. Approval of the WISE Agreement, the professional services agreement with HF&H Consultants, and directing the City Manager to negotiate an MOU with Republic Services will allow the City to maintain reliable solid waste disposal services while managing the financial impacts associated with the new County disposal rate structure. BACKGROUND & DISCUSSION The County of Orange (County), through Orange County Waste & Recycling (OCWR), manages the regional solid waste disposal system serving Orange County. The County operates three active organic processing facilities, 20 inactive solid waste disposal sites, and four household hazardous waste collection centers. Solid waste generated within the City of Santa Ana (City) is disposed of at County landfill facilities and has historically been governed by the 2009 WDA between the City