City Council

8. WASTE INFRASTRUCTURE SYSTEM ENTERPRISE AGREEMENT WITH THE COUNTY OF ORANGE The disposal of solid waste at the County of Orange’s landfills is currently governed by a Waste Disposal Agreement under which cities and sanitary districts agree to exclusively dispose of certain waste at the County landfills in exchange for stable disposal rates. The Waste Disposal Agreement expires June 30, 2026. The Orange County City Manager Association has negotiated a successor agreement with Orange County Waste & Recycling, titled the Waste Infrastructure System Enterprise Agreement, which establishes updated terms for landfill disposal and related services. If approved, it will become effective July 1, 2026, for an initial ten-year term ending June 30, 2036, with an option to renew for an additional ten years. Recommendation: It is recommended that the City Council: 1. Approve the Waste Infrastructure System Enterprise Agreement with the County of Orange for municipal solid waste disposal rates and services; and 2. Authorize the City Manager, or designee, to execute the agreement on behalf of the City. Fiscal Impact: This agreement will have no fiscal impact on the General Fund and maintains revenue sharing from imported waste received by the County of Orange. Through the proposed agreement the County of Orange increases rates that are recovered by the City's contracted solid waste hauler CR&R. The first three years of the agreement include a structured rate increase proposed the County of Orange followed by annual adjustments based on Consumer Price Indices. These increases proposed by the County of Orange will be passed on to Tustin residential and business customers according to the terms of the City's existing contract with CR&R. Per the contract, CR&R is permitted to recover increased disposal costs through a pass-through mechanism subject to review and approval by the City.