CITY COUNCIL AGENDA REPORT
200 S. Anaheim Blvd.
Second Floor
Anaheim, CA 92805
Tel: (714) 765-5176
www.anaheim.net
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: MARCH 24, 2026
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: APPROVAL OF WASTE INFRASTRUCTURE SYSTEM
ENTERPRISE (WISE) AGREEMENT WITH COUNTY OF
ORANGE
ATTACHEMENT (Y/N): YES ITEM # 19 GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1) Approve the Waste Infrastructure System Enterprise (WISE) Agreement (Agreement) with the County of Orange for solid waste disposal services, effective July 1, 2026, through June 30, 2036, with one optional 10-year extension for a three (3) year progressive rate of $67/ton (July 1, 2026 through June 30, 2027), $74/ton (July 1, 2027 through June 30, 2028), and $81/ton (July 1, 2028 through June 30, 2029) subject to a rate adjustment each July 1 beginning 2029 equal to the percentage change in the consumer price index;
2) Authorize and direct the Director of Public Works, or designee, to execute the Agreement and any other related documents on behalf of the City, and take any and all actions as are necessary, required, or advisable to implement and administer the Agreement.
BACKGROUND:
The County of Orange, through Orange County Waste & Recycling (OCWR), operates a regional landfill system consisting of three active and approximately 20 inactive landfill sites. Since 1997, the City of Anaheim has participated in a regional Waste Disposal Agreement (WDA) to manage its annual disposal of approximately 555,000 tons of solid waste.
The current WDA, established in 2009, was originally set to expire in 2025. In May 2025, the City Council approved an amendment extending the term to June 30, 2026. This extension allowed the Orange County City Managers Association (OCCMA) to finalize negotiations on a successor agreement, now titled the Waste Infrastructure System Enterprise Agreement.
Approval of Waste Infrastructure System Enterprise (WISE) Agreement with the County of Orange March 24, 2026
DISCUSSION:
After extensive negotiations between the County and the OCCMA Subcommittee this past year, OCCMA reached an agreement on a phased rate structure for the first three years of the agreement, as shown in the table below. The increase in fees will fund ongoing OCWR personnel costs, regulatory mandates, landfill expansions, post-closure requirements, and critical infrastructure projects that have not kept up with past annual CPI increases.
The negotiations resulted in a phased per-ton landfill disposal fee structure for the first three years of the agreement:
The figures shown above do not reflect a direct increase to the solid waste fees for residents and businesses. While the per-ton landfill disposal fee will increase, it is important to note that disposal costs represent only approximately 23% of a typical customer’s monthly bill. To mitigate the immediate financial impact on residents and businesses, the City will be proposing an incremental increase of approximately 5% per year over a five-year period. City staff will return to Council with a recommended final rate schedule for Fiscal Year 2026/27 as part of the City's annual fee adoption process.
While the primary focus of the negotiations was tied to the disposal rate, OCCMA successfully negotiated the following key provisions in the new agreement:
Ongoing opportunities for OCCMA involvement to ensure transparency regarding OCWR's financial position.
Implements a "True-Up" process which allows for a potential freeze on CPI increases on the contract rate based on OCWR's cost recovery levels. This process includes a review of estimated versus actual tonnage and allows cities to initiate a "meet and confer" process involving an independent consultant.
Cities and districts are not required to use OCWR facilities for organic waste processing, and an optional contract is available for interested jurisdictions.
The Orange County Board of Supervisors approved the proposed WISE Agreement on January 27, 2026. The County may increase the contract rate by 10% for any agreements executed after the April deadline. The agreement is for 10 years, through June 30, 2036, with one optional 10- year extension.
Fiscal Year Contract Rate Dollar Increase % Increase
2025-26 (current) $43.76/ton ---
2026–27 $67.00/ton $23.24 53.1%
2027–28 $74.00/ton $7.00 10.4%
2028–29 $81.00/ton $7.00 9.5%
2029–30 $81.00/ton + CPI Variable Variable
Approval of Waste Infrastructure System Enterprise (WISE) Agreement with the County of Orange March 24, 2026
IMPACT ON BUDGET:
All costs associated with this agreement will be included in the Public Works Department’s proposed FY 2026/27 Sanitation Fund budget for consideration in June 2026.
Respectfully submitted,
Rudy Emami
Director of Public Works
Attachment:
1. Agreement with County of Orange