Item 16 - Agreement for the Waste Infrastructure System Enterprise

Home Browse Search

Waste Infrastructure System Enterprise Agreement with the County of Orange April 21, 2026 Page 3 5 7 0 0 and the County. Under the WDA, all 34 Orange County participating jurisdictions agreed to dispose of solid waste within the County landfill system in exchange for stable disposal rates and guaranteed landfill capacity. The WDA established parameters for landfill disposal rates and the importation of waste from outside the County. The City Council approved the original WDA on May 4, 2009, with a term beginning July 1, 2010. The agreement was subsequently amended several times to maintain rate stability for participating jurisdictions. Most recently, the City Council approved an amendment to the WDA on May 20, 2025, extending the agreement through June 30, 2026 to allow the Orange County City Managers Association (OCCMA) time to finalize negotiations with the County on a successor agreement, now titled the Waste Infrastructure System Enterprise (WISE) Agreement (Exhibit 1). WISE Agreement The County developed the WISE Agreement as the successor to the WDA to address increased operational requirements associated with landfill management, including new State regulatory mandates, environmental compliance obligations, and long-term infrastructure and closure costs. The proposed agreement was adopted by the Orange County Board of Supervisors and requires ratification by a majority of Orange County cities to become effective. The majority has been met; as of April 14th, 27 cities have adopted the WISE Agreement, surpassing the 50% threshold. Participating cities coordinated negotiations with the County through OCCMA to secure more favorable terms for local jurisdictions. During negotiations, OCWR identified rising operational and regulatory costs related to landfill operations, as well as the need for additional capital funding to support closure activities at the Brea Olinda Landfill and the long-term capacity expansion of the landfill in San Juan Capistrano. OCWR’s initial WISE proposal included a substantial increase in disposal rates from the current $43.76 per ton in Fiscal Year (FY) 2025-26 to $82.00 per ton in the first year of the new agreement, with projected increases reaching approximately $107.00 per ton by 2035. Through extensive negotiations, participating agencies secured a phased rate structure for the first three years of the agreement, followed by annual Consumer Price Index (CPI) adjustments beginning in FY 2029-30. Figure 1 – Disposal Fee Structure Fiscal Year Contract Rate % Increase 2025-26 (Current)$43.76/ton --- 2026-27 $67.00/ton 53.1% 2027-28 $74.00/ton 10.4% 2028-29 $81.00/ton 9.5% 2029-30 $81.00/ton + CPI Variable