City Council

8.\nWASTE INFRASTRUCTURE SYSTEM ENTERPRISE AGREEMENT\nWITH THE COUNTY OF ORANGE The disposal of solid waste at the\nCounty of Orange’s landfills is currently governed by a Waste Disposal\nAgreement under which cities and sanitary districts agree to exclusively\ndispose of certain waste at the County landfills in exchange for stable\ndisposal rates. The Waste Disposal Agreement expires June 30, 2026.\nThe Orange County City Manager Association has negotiated a successor\nagreement with Orange County Waste & Recycling, titled the Waste\nInfrastructure System Enterprise Agreement, which establishes updated\nterms for landfill disposal and related services. If approved, it will become\neffective July 1, 2026, for an initial ten-year term ending June 30, 2036,\nwith an option to renew for an additional ten years.\nRecommendation: It is recommended that the City Council: 1. Approve the\nWaste Infrastructure System Enterprise Agreement with the County of\nOrange for municipal solid waste disposal rates and services; and 2.\nAuthorize the City Manager, or designee, to execute the agreement on\nbehalf of the City. Fiscal Impact: This agreement will have no fiscal impact\non the General Fund and maintains revenue sharing from imported waste\nreceived by the County of Orange. Through the proposed agreement the\nCounty of Orange increases rates that are recovered by the City's\ncontracted solid waste hauler CR&R. The first three years of the\nagreement include a structured rate increase proposed the County of\nOrange followed by annual adjustments based on Consumer Price\nIndices. These increases proposed by the County of Orange will be\npassed on to Tustin residential and business customers according to the\nterms of the City's existing contract with CR&R. Per the contract, CR&R is\npermitted to recover increased disposal costs through a pass-through\nmechanism subject to review and approval by the City.