AGENDA
SPECIAL MEETING OF THE CITY COUNCIL
PUBLIC WORKS SUBCOMMITTEE
Agoura Hills City Hall - City Manager's Conference Room 30001 Ladyface Court, Agoura Hills, California 91301
Wednesday, September 30, 2026
3:00 PM
Please silence all cell phones and other electronic devices during the meeting.
NOTE: The Subcommittee and City staff will be participating in this meeting in-person in the City Manager's Conference Room. Members of the public have the opportunity to participate in-person in the conference room.
For public participation on items listed on this Agenda, refer to "Public Comments" below.
PUBLIC PARTICIPATION (PUBLIC COMMENT)
Option A: To provide public comments in-person at the meeting Members of the public have an opportunity to attend the meeting in-person and speak or submit a written comment on any item listed on this Agenda. Public testimony is limited to three (3) minutes per speaker; a speaker’s time may not be transferred to another speaker. Written public comments submitted at the meeting are not read aloud by staff.
To request to speak in-person at the meeting. The Subcommittee will open the floor for public comment and any in-person attendee who raises their hand will have the opportunity to speak. Public testimony is limited to three (3) minutes per speaker; a speaker's time may no be transferred to another speaker.
Option B: To submit written public comments by e-mail (prior to the meeting) Members of the public have an opportunity to submit email correspondence on any item listed on the Agenda by sending an email to: [email protected]. All public correspondence received by 2:00 p.m. on the meeting date will be provided to the Subcommittee prior to the meeting. Public comments are not read into the record. Any public comments received after 2:00 p.m. on the meeting day will not be considered as part of the Subcommittee’s deliberations or entered into the official record, but will be provided to the Subcommittee the next day.
CALL TO ORDER
ROLL CALL
Mayor Jeremy Wolf
Councilmember Kate Anderson
APPROVAL OF AGENDA
PUBLIC COMMENTS
(This section is reserved for persons wishing to address items not listed on the Agenda that are under the subject matter jurisdiction of the City Council. Please refer to “Public Participation” above for full details on how to speak or submit written public comments under this category.)
DISCUSSION ITEMS
1. Solid Waste Franchise Agreement Update and Direction Regarding Waste Management Proposal Receive an update on discussions with Waste Management (WM) regarding the City’s solid waste franchise agreement; review and discuss the current proposal; and provide staff with direction on next steps before City Council consideration.
SUBCOMMITTEE OR STAFF COMMENTS
ADJOURNMENT
Date Posted: September 25, 2026
REPORT TO CITY COUNCIL
DATE: SEPTEMBER 30, 2026
TO: HONORABLE MEMBERS OF THE PUBLIC WORKS SUBCOMMITTEE
FROM: NATHAN HAMBURGER, CITY MANAGER
BY: RAMIRO ADEVA, ASSISTANT CITY MANAGER
SUBJECT:
SOLID WASTE FRANCHISE AGREEMENT UPDATE AND DIRECTION REGARDING WASTE
MANAGEMENT PROPOSAL
The City’s current residential solid waste franchise agreement with Waste Management expires on June 30, 2027.
In anticipation of the expiration of the agreement, the City Council previously discussed options for securing solid waste collection services beyond the current term.
As part of the most recent discussions, the City Council directed staff to begin development of a competitive Request for Proposals (RFP) while concurrently engaging with WM, the City’s existing franchisee, to determine whether mutually agreeable terms could be reached for a potential extension or renewal of the franchise agreement.
Since receiving that direction, staff and the City’s solid waste consultant (SWS) have continued discussions with WM regarding the terms of a potential new agreement. Those discussions have included service levels, proposed rates and rate adjustments, franchise terms, regulatory requirements, and other provisions intended to ensure that any future agreement continues to meet the needs of the City and its residents and businesses.
Through these discussions, WM has provided a proposal outlining the terms under which it would be willing to enter into a new franchise agreement with the City. Staff has continued working with WM to clarify and refine various components of the proposal and believes the discussions have progressed to a point where it is appropriate to present the current proposal to the Public Works Subcommittee for review and discussion.
The purpose of this meeting is not to make a final determination regarding the franchise agreement. Rather, staff is seeking the Subcommittee’s input regarding the current proposal, including whether there are provisions that should be modified, clarified, or further negotiated before the matter is presented to the full City Council. Refer to the attached draft proposal from WM.
Based on the feedback and direction from the Public Works Subcommittee, staff will continue working with WM to resolve any remaining issues the Subcommittee identified.
Staff's goal is to return to the City Council later this calendar year with sufficient information for the Council to provide formal direction regarding whether to proceed with a new franchise agreement with WM or pursue an alternative procurement process.
Obtaining direction within this timeframe is important given the June 30, 2027 expiration of the existing franchise agreement. Once a direction is established, staff will be able to focus its efforts and resources on implementing that approach, and preparing the necessary agreement if the City Council elects to continue with WM, or proceeding with an RFP and procurement process if directed to pursue a competitive solicitation.
Ultimately, staff's objective is to provide sufficient time for implementation and transition so that solid waste collection services continue without interruption upon expiration of the existing agreement.
FISCAL IMPACT
There is no direct fiscal impact associated with receiving this update and providing direction to staff. Should the City ultimately elect to proceed with a new franchise agreement with Waste Management, the fiscal impacts associated with the proposed agreement, including rates, franchise revenues, and other financial terms, will be further evaluated and presented to the City Council as part of its consideration of the agreement. Alternatively, should the City elect to pursue a competitive Request for Proposals (RFP) process, any associated fiscal impacts will be evaluated as part of that process.
RECOMMENDATION
Staff respectfully recommends the Public Works Subcommittee (1) receive an update on discussions with Waste Management (WM) regarding the City’s solid waste franchise agreement; (2) review and discuss the current proposal; and (3) provide staff with direction on next steps before City Council consideration.
Attachments
WM Proposal for Agoura Hills Updated - May 2026 - Revised 9-25-26.pdf Printed on 100% post -consumer recycled paper.
Please recycle after use.
CITY OF AGOURA HILLS + WM
PROPOSAL FOR SOLID WASTE SERVICES AGREEMENT RENEWAL
Bringing $5.2 + MILLION in Benefit s to Agoura Hills
Over the Life of an Extended Agreement
Decades of safe, reliable service, environmental protection, SB 1383 compliance momentum, and community program success cannot be transferred. Extending our agreement protects your residents and preserves what works while bringing the following benefits :
NEW BENEFITS
$3 ,000,000 +
Additional R evenue to City with
Commercial Exclusivity
$450 ,000
New C arts at No C ost to the City or
Residents Delivered in Year 1
$400 ,000
Estimated Savings to Resident s
by P hasing in Rates vs. RFP
$100,000
New ABOP Community Recycling
Event Funding Over Term
$400,000
Potential Street Sweeping Cost
Savings Over Term Through WM’s
Vendor Network
$5 0,000
Funding for Sharps and Battery
Recycling Program s
35% Diversion
Commercial Diversion Rate
Commitment with Exclusivity
$250 ,000
Value of Enhanced SB 1383
Compliance Programs
$150 ,000
Value of SB 1383 Recovered Organic
Waste Products Procurement Credits
RETAINED & ENHANCED BENEFITS
15% Senior
Discount
Maintains the region’s largest discount
with new outreach requirements
Most Favored City
Rate Protection
Maintains rate protection that
delivered nearly $1M since 2021
10 More Year s of
Excellent Service
City avoids the impact of a costly RFP
and the hassle of a transition
WM | City of Agoura Hills | Solid Waste Agreement Renewal Proposal 2 Printed on 100% post -consumer recycled paper.
Please recycle after use.
Good Faith Negotiation Secures Future for Agoura Hills
Both parties negotiated in good faith and City staff delivered a strong result for residents.
Point Current Request (s) Negotiated Benefit
1 Contract Term N/A City: 10 years
WM: 5 years
City Win: Full 10 -year term ; WM accepted
despite financial uncertainty
2 Capacity
Guarantee
None City: Guaranteed
capacity
City Win: Disposal and processing capacity
secured for full 10 -year term
3 Rate Adjustment
Formula
CPI only; SWRA is
a separate request
WM: CPI (Garbage
&Trash Index) + Disposal
Compromise: CPI (Regional Index) +
Disposal (aligned with City of Westlake
Village)
4 Annual Rate Cap 3% WM: Remove Cap or
Increase to 5%
Compromise: 4% Annual Rate Cap
5 MFC Provision Most Favored City
(MFC) rate cap
already in place
WM: Eliminate MFC City Win: MFC fully retained. WM gets a minor methodology refinement (from “two
city ” to “two -city average” comparison)
6 Rate Structure 5 tiers, 3 covered
by MFC protections
City: Provide s avings for
residents not covered by
MFC protections
City Win: Simplified 3 -tier structure means
immediate savings to previously higher -tier
residential customers who did not benefit
from MFC protections
7 Market Rate
Adjustment
Full correction in
Year 1 with RFP
City: Phased -in
adjustments
Compromise: WM absorbs costs in Year 1;
$1.25/mo. supplemental adjustments in
Years 2 and 3 only (~$400K in resident
savings)
8 Senior Discount
Program
15% WM: Reduce to regional
average (10%)
City Win: 15% retained, plus WM commits to
proactive outreach efforts and reporting to
be memorialized in agreement
9 SB 1383 Cart
Replacement
None; Regulation
allows until 2036 to
complete
City: Expedited schedule
commitment
City Win: Replacement of remaining carts in
Year 1 at no cost to City or residents (a
$450K value)
10 ABOP Support None City: Supplemental
funding
City Win: $10K/ year to supplement City’s
existing $5K grant ($100 ,000 over term )
11 Illegal Dumping
Support
None City: Illegal Dumping
Support
City Win: WM agreed. Memorialized at
current service volumes
12 Sharps Disposal /
Battery Recycling
Program s
None City: Sharps mail-back
containers; battery
recycling support
City Win: $5 K/year in support ($50 K over
term)
13 SB 1383
Compliance
Support
None City: Enhance agreement
commitment
City Win: Contamination monitoring, route
reviews, education and reporting included
14 ROWP
Procurement
Support
None City: Provide ROWP
procurement credit
City Win: $15 K/year in credit toward
recovered organic waste procurement
($150 K over term)
15 Commercial
Service Rates
None; Open Market City: Bundled base rate ,
plus annual rate cap
City Win: Recycling and organics included
in every commercial base rate
16 Commercial
Diversion
None City: Improvement target
commitment
City Win: Recycling Coach, site visits, 10%
Year 1 improvement; 35% by Year 4
17 Street Sweeping None City: Cost relief City Win: Potential Savings to City through WM Vendor Network + optional bundled
services.
WM | City of Agoura Hills | Solid Waste Agreement Renewal Proposal 3 Printed on 100% post -consumer recycled paper.
Please recycle after use.
For the Win - Highlights of How This Proposal Benefit s Agoura Hills
1. 10 -Year Agreement Life
The City asked for a ten -year commitment . WM agreed.
• City request: The City requested a ten -year agreement term. • WM's financial exposure: WM preferred a five -year term due to historical impact of Most Favored City ( MFC ) clause , 3% Annual Rate Cap , unprecedented labor cost escalation s, shrinking landfill capacity, and tightening environmental compliance costs.
Why this is a City win : WM accept s the full risk of the requested term. Agoura Hills gets ten years of rate certainty, program continuity, and avoid s incurring any procurement costs.
2. Guaranteed Disposal and Processing Capacity
With the continuation of th e agreement, the City has a guaranteed home for its waste. • Capacity required : The City requested disposal and processing capacity commitments , as required by SB 1383, for the full term of an extend ed agreement. • Environmental alignment and accountability: WM operates properly permitted disposal and processing facilities with the highest compliance and ethical standards. The City's materials are handled responsibly, and its environmental reputation is protected.
Why this is a City win : Regional landfill capacity is rapidly diminishing and tipping fees are rising.
This agreement provides the City an unconditional capacity guarantee at WM facilities with long lifespans and strong environmental records.
3. Predictable, Phased in Approach to Adjusting Rates
Agoura Hills rates are below cost. WM is offering a phase -in not available in an RFP. • Market reality: Agoura Hills’ rates have not kept up with rising service costs, meaning a rate adjustment is unavoidable regardless of the provider servicing the city . • The WM difference: Rather than the full increase you would likely get in Year 1 with an RFP, WM is proposing a three -year phase -in: WM absorbs all the costs in Year 1; $1.25 per household per month supplemental adjustments in Years 2 and 3 along with annual rate adjustment s. • Resident savings: WM’s p hased -in approach saves approximately $400,000 compared to a single full rate correction at the contract start under an RFP . • RFP -related cost s added to rates : A competitive procurement process will add another $200 - $400K in costs from any provider if reimbursed by the awardee . This is on top of the startup capital costs (collection vehicles, containers, infrastructure , etc.) another propos er would need to service the city . These additional costs would all be factored into the starting service rates . • Diversion and reputational risk: A transition resets the City’s SB 1383 compliance momentum. A new provider starts at zero on diversion performance, community trust, and service history in Agoura Hills. With WM, the City avoids all these challenges.
Why this is a City win: The City and its residents have enjoyed a tremendous amount of rate stability amid the most volatile business climate in four decades. While no provider can completely shield Agoura Hills from the pending correction , WM can delay and lessen the impact , all without WM | City of Agoura Hills | Solid Waste Agreement Renewal Proposal 4 Printed on 100% post -consumer recycled paper.
Please recycle after use.
any potential risk to the community’s reputation, reduction in services, or non -compliance with recycling regulations.
4. Predictability and Consistency for Agoura Hills Businesses City oversight, full SB 1383 compliance, diversion commitment , and a secure cost recovery revenue stream would align Agoura Hills with the region. • Open market drawbacks: With limited curren t control or oversight, the City has all the responsibility, but none of the resources or framework to manage how commercial services are provided. Worse, rising operational costs and mounting regulations have virtually eliminated the vigorous competition the open market arrangement was supposed to be foster ing . • Bundled service: Under WM’s proposal, e very commercial account would receive a base level of services that include recycling and organics collection , driving SB 1383 complian ce from day one. Rates for services would be set and adjusted by the City Council . • Diversion accountability: By adding a local Recycling Coach , q uarterly site visits to non - compliant customers and a n annual report commitment to Council , WM can deliver a 10% year - over -year improvement to Agoura Hills ’ commercial diversion rate, with a t arget of 35% overall by Year 4.
• City Administration Costs Covered : As a part of the franchise, WM would remit 10% of gross receipts for commercial services to the City , a revenue stream that does not exist today. • Balanced r ate benefit: By including c ommercial services in the franchise, WM can better balance costs and offer lower residential rates. Without it, residential rates would be substantially higher.
Why this is a City win : Agoura Hills values predictability and consistency for its residents and can extend this same approach to its business community. C ommercial exclusivity is the key to improving the City’s diversion rate, standardizing service offering and rates for businesses, reaching citywide SB 1383 compliance, and lowering service costs for residents.
5. New Year 1 Commitments and Enhanced Community Programs Tangible, immediate value for Agoura Hills residents.
• New SB 1383 -Compliant C arts in Year 1 : All existing non -compliant trash and recycling carts will be replaced within the first year of the new agreement, eight years ahead of the regulatory deadline . This accelerated replacement schedule, valued at $450,000 , will be fully absorbed by WM with no additional cost to the City or r esidents.
• Antifreeze, Battery, Oil (and filter) and Paint (ABOP) C ollection Ev ent S upport : Up to $10,000 per year (for ten years) in in -kind services will be provided to supplement the City's existing $5,000 ABOP community grant , ensuring Agoura Hills’ residents can properly dispose or recycle hard to handle items.
• “Region’s Highest ” senior discount retained : Agoura Hills will maintain its 15% senior discount program (regional average is 10%) , supplemented by an a nnual enrollment drive, bilingual outreach, and regular Council updates .
• Sharps and Battery Recycling Program E nhancement S upport : Up to $ 5,000 per year (for ten years) in in -kind sharps and battery recycling services will be provided to supplement the City's existing efforts to properly recycle household generated sharps and batteries.
WM | City of Agoura Hills | Solid Waste Agreement Renewal Proposal 5 Printed on 100% post -consumer recycled paper.
Please recycle after use.
• SB 1383 Recycled Organic Waste Products (ROWP) Procurement Cr edits: Up to $15,000 per year (for ten years) in Recycled Organic Waste Products (ROWP) procurement c redits to support the City’s compliance with SB 1383 procurements requirements. • Illegal Dumping Response: Memorializ es the City’s ability to direct the periodic abatement of illegal discarded items from City property and rights of way at no additio nal cost to City or its residents .
Why this is a City win : With the average procurement process taking 18 -24 months to complete, this means wait ing a year or more to see the benefits. By negotiating these enhancements now, Agoura Hills and its residents could start taking advantage of them in 2026.
A Partnership Worth Preserving
WM remains a committed, long -term partner in the health, sustainability, and fiscal strength of Agoura Hills and w e offer this proposal in the spirit of collaboration . As clearly demonstrated, our negotiations have produced a path forward that is not only appropriate but is the most fiscally and politically responsible option for Agoura Hills to protect its existing programs and reputation.
We welcome the opportunity to present these terms to the City Manager, City Attorney, and Council at their earliest convenience .
Respectfully Submitted by WM